Sonic [S] has declined by 11.25%, causing investors from the past month to record a 3.78% loss.

In recent days, Sonic [S] has declined by 11.25%, causing investors from the past month to record a 3.78% loss. Currently, market activity remains bearish

In a recent development, Sonic [S] has experienced a decline of 11.25%, resulting in investors who purchased the asset within the past month recording a loss of 3.78%.

Currently, market activity is indicating a bearish trend, with both retail and large investors, some linked to the decentralized protocol Aave [AAVE], contributing to the decline.

Behind the scenes of Sonic's liquidity outflow

The decrease in Sonic's price can be attributed to a significant outflow of liquidity from the market in the past 24 hours. A key indicator of this is the total value locked (TVL).

According to DeFiLlama, Sonic's TVL decreased by $140 million in just 24 hours, pulling the ecosystem down toward multi-week lows.

Source: DeFiLlama

This decline coincided with a 10% drop in stablecoins deployed on Sonic—from $582.33M to $523.39M over the past week. In essence, liquidity is quickly leaving the market and not returning.

These withdrawals suggest that both retail users and larger entities are closing positions and reducing their exposure to the asset.

Could protocol whales be behind the drop?

Furthermore, Aave's protocol activity on Sonic has not fared better. Over the past seven days, Aave's TVL decreased by a significant 27.28%, the largest decline among major Sonic-linked protocols.

Source: DeFiLlama

Such a decrease could indicate that large holders are driving the outflows. AMBCrypto has analyzed the behavior of large holders in the market.

According to the Large Holder Netflow—which tracks the inflow and outflow activity by major players—2 million FTM was sold.

Source: IntoTheBlock

At the current price, this group sold $950,000 worth of tokens in the past 24 hours alone. If this trend continues, Sonic is likely to slide further.

Spot traders join the action

Spot traders, typically retail investors, are also contributing to the ongoing trend.

For the first time since March, this group recorded a weekly sell-off of Sonic. Data from CoinGlass shows that investors sold over $300,000 worth of the asset.

Source: CoinGlass

When such a shift occurs after weeks of accumulation, it signals a highly negative market sentiment regarding the asset's next move.

For now, most market indicators suggest that a further decrease in Sonic's value is anticipated.