Key takeaways
- S is up 1% in the last 24 hours and is now trading above $0.30.
- The positive performance comes as Sonic Labs commits $40m to SonicStrategy to fund U.S. expansion.
Sonic Labs sets aside $40 million for SonicStrategy
S, the native coin of the Sonic Labs ecosystem, is up 1% in the last 24 hours and now trading above $0.30. The positive performance coincides with a broader market rally, with Bitcoin reclaiming the $111k mark.
However, S could rally higher in the near term thanks to positive development within the Sonic Labs ecosystem. Spetz (SPTZ), doing business as SonicStrategy, announced a few hours ago that it will receive $40 million in convertible funding from the foundation behind the Sonic blockchain, Sonic Labs.
The company added that the funding will support its treasury, validator operations, and blockchain investments. Furthermore, the funding can also convert to common stock at $4.50 per share if certain conditions are met.
The investment is part of Sonic’s expansion into the US, as it also looks to launch an ETF and pursue a PIPE vehicle.
S targets $0.32 amid improved market conditions
The S/USD 4-hour chart is bearish and efficient but could soon flip bullish as market conditions start to improve. The RSI of 48 shows that the selling pressure is declining, with the MACD lines about to cross into the positive zone.
At press time, S is trading at $0.309, up from Monday’s low of $0.29. If the recovery continues, S could target the TLQ and support level at $0.32 over the next few hours. An extended bullish run would allow S to reclaim the high of $0.36 from August 24th.
However, the market remains jittery, and prices could face a correction. If that happens, S could retest the $0.29 low before dipping towards the August low of $0.272.
