- Sonm is a blockchain project that provides fog computing solutions.
- SNM, its coin, has surged this year and reached its all-time high.
Sonm price has defied gravity this week even as other cryptocurrencies retreated. It rose to a high of $13.47, which was the highest level on record. It has rallied by more than 1,000% this year, making it one of the best-performing cryptocurrencies in the world. As a result, its total market cap has jumped to more than $42 million.
What is Sonm?
Sonm is a company in the blockchain industry that provides decentralized fog computing solutions. Fog computing refers to a system in which data, compute, storage, and applications are located between the data source and the cloud.
It differs with edge computing, which refers to a situation where the deployment of computing and storage resources happen at the location where data is created. Another misconception is that fog computing replaces cloud computing.
Instead, it enables short-term analytics at the edge. Indeed, Sonm provides cloud services based on distributed customer-level hardware, including PCs, mining equipment, and PCs.
Sonm also provides a smart contracts-based marketplace where users can trade computing power using an internal cryptocurrency token. Sonm is a BEP-20 token, meaning that it was developed using Binance’s standard.
Sonm has many use cases. For example, it is used to provide infrastructure services for blockchain apps, machine learning, rendering, and CDN solutions.
Sonm price has risen for two main reasons. First, the volume of Sonm traded on a daily basis has increased rapidly in the past few days. According to CoinMarketCap, it has risen by more than 540% in the past 24 hours to $221 million.
Second, the strong performance of Sonm price has triggered the fear of missing out (FOMO). FOMO happens when token rallies and then pushes other investors.
So, is SONM a good investment? While Sonm has done well in the past few months, it is unclear whether it will continue doing well in the future. For one, as a fog computing platform, its role is not well-understood by many retail investors.
Sonm price forecast
The daily chart shows that the SON crypto price has been in a strong bullish trend in the past few months. As it rose, the coin managed to move above the key resistance level at $0.90, which was the highest level this year. It has then retested this level, in what is known as a break and retest pattern.
Sonm remains above all moving averages while the Relative Strength Index (RSI) has pulled back slightly. Therefore, there is a likelihood that the coin will bounce back briefly. If this happens, the next key resistance level to watch will be at $1.50.
