Market conditions have improved over the past week, and Bitcoin's re-entry above $100,000 has become a bullish trigger for many altcoins. However, the potential for further growth due to key network developments remains for some cryptocurrency tokens.
BeInCrypto analyzed three such altcoins that investors should pay attention to in the coming days.
Sonic (S) (formerly Fantom)
The price of Sonic has increased by 22% since the beginning of this month, reaching $0.60. However, despite recent gains, Sonic has not fully recovered from the losses suffered in March, and the price dynamics are still under pressure from previous declines.
The upcoming sharding feature, scheduled to launch on May 15, could play a key role in the recovery of Sonic. This update is expected to increase transaction speed and reduce network congestion, potentially driving the altcoin to further growth. If improvements take off, Sonic could rise to $0.74, recovering losses from March. However, if Sonic experiences profit-taking in the short term, it may not overcome resistance at the $0.60 level. A break below this level could lead to a decline of Sonic to $0.50, nullifying the current bullish forecast.
Arbitrum (ARB)
ARB has risen by 51% over the past five days, trading at $0.47. This makes it one of the most successful tokens of the week. However, with 92.65 million ARB tokens set to be unlocked on May 16, releasing tokens worth $43 million, price volatility is expected.
Prior to the unlocking of ARB tokens, further growth may be experienced. The Ichimoku cloud is currently below the candles, signaling potential bullish momentum. If this momentum continues, ARB could surpass $0.51, heading towards $0.55, with strong buying support potentially pushing the altcoin higher in the short term. However, if ARB fails to hold its support level at $0.47, a price decline is likely. The upcoming unlocking of tokens could exacerbate this decline, potentially lowering ARB to $0.38. This would nullify the current bullish forecast and signal a bearish reversal.
Jupiter (JUP)
JUP has experienced nearly 40% growth over the past few days, currently trading at $0.58. To reach critical resistance at $0.68, the altcoin needs an additional push of 16%. Current momentum shows potential, but securing support at $0.57 is necessary for further growth.
This week, JUP is expected to benefit from significant developments. The Jupiter exchange announced that 2.5% of the transaction fees from jupSOL will be allocated to the decentralized autonomous organization Jupiter (DAO). This new revenue stream could provide increased liquidity and a positive sentiment, supporting the price growth of JUP in the short term. If the new revenue model boosts investor confidence, JUP may surpass the $0.68 level, provided it can hold $0.57 as a support floor. However, if the altcoin fails to maintain this level, a likely drop to $0.47 could occur, nullifying the bullish forecast and erasing recent gains.#BinanceSquare #Binance #Write2Earn #NewsTrade #TradeStories $ETH