Sonic Labs ditches algorithmic stablecoin in favor of UAE dirham alternative

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: Mar 29 2025

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Sonic Labs' Shift in Stablecoin Strategy: Sonic Labs has decided to abandon its plans for a US dollar-pegged algorithmic stablecoin and will instead develop a new stablecoin denominated in UAE dirhams, as confirmed by co-founder Andre Cronje. This decision follows concerns within the crypto community regarding algorithmic stablecoins after the collapse of the Terra ecosystem in 2022.
Impact of UAE's Digital Dirham Launch: The change in direction aligns with the UAE's upcoming launch of a digital dirham central bank digital currency (CBDC) set for late 2025, which aims to enhance financial stability and combat financial crime, further influencing Sonic Labs' decision to pivot away from the USD-based model.

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Technical Analysis for SONIC

Technical Sentiment Analysis for Sonic SVM (SONIC). As of , Sonic SVM (SONIC) is exhibiting a Buy technical sentiment. Our proprietary analysis, which aggregates 8 technical signals, shows that 5 indicators are flashing buy, while 3 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for SONIC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, SONIC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Sonic SVM (SONIC) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	0.0324	0.0347	0.0367	0.0391	0.0411	0.0434	0.0455
Fibonacci	0.0347	0.0364	0.0374	0.0391	0.0407	0.0418	0.0434

About SONIC

Sonic is the first SVM network extension to launch on Solana, for games and applications.Powering Web3 TikTok App Layer - onboarding next billion users.Built with Sonic HyperGrid, a framework for orchestrating optimistic Solana rollups.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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