Key takeaways
- S rose 1% in the past 24 hours and is now trading above $0.30.
- This positive performance coincides with Sonic Labs committing $40 million to SonicStrategy to support its U.S. expansion.
Sonic Labs allocates $40 million to SonicStrategy
S, the native token of the Sonic Labs ecosystem, gained 1% over the last 24 hours and is trading above $0.30. This uptick comes amid a broader market rally, with Bitcoin reclaiming the $111,000 level.
S could see further near-term upside following a significant development within the Sonic Labs ecosystem. Spetz (SPTZ), operating as SonicStrategy, announced it will receive $40 million in convertible financing from Sonic Labs, the foundation behind the Sonic blockchain.
The company said the funding will support its treasury, validation operations, and blockchain investments. The financing may also convert into common shares at $4.50 per share if certain conditions are met.
This investment is part of Sonic’s U.S. expansion strategy, which also contemplates launching an ETF and pursuing a PIPE vehicle.
S targets $0.32 as market conditions improve
The 4-hour S/USD chart is currently bearish and orderly, but it could turn bullish as market conditions improve. A 48 RSI indicates selling pressure has eased, and the MACD lines are poised to enter positive territory.
At the time of writing, S trades at $0.309, up from Monday’s low of $0.29. If the recovery continues, S could aim for the TLQ and the $0.32 support level within the next few hours. A sustained rally would put S on track to reclaim the $0.36 high reached on August 24.
That said, the market remains cautious, and prices could face a correction. If that happens, S may retest the $0.29 low before potentially sliding toward August’s low of $0.272.