Market conditions have improved over the past week, and Bitcoin’s re-entry above $100,000 has been a bullish trigger for many altcoins. Nevertheless, the potential for further growth owing to key network developments persists for some crypto tokens.
BeInCrypto has analysed three such altcoins for the investors to watch in the coming days.
Sonic (S) (Previously Fantom)
Sonic’s price has risen by 22% since the beginning of this month, bringing the altcoin to $0.60. However, despite the recent gains, Sonic is yet to fully recover from the losses experienced in March, with price action still under pressure from earlier declines.
The upcoming Sharding feature, set to launch on May 15, could play a key role in Sonic’s recovery. This upgrade is expected to increase transaction speed and reduce network congestion, potentially driving the altcoin further upward. If the improvements take hold, Sonic could rise to $0.74, recovering March’s losses.
However, if Sonic experiences profit-taking in the near term, it could fail to breach the $0.60 resistance. A breakdown below this level could see Sonic decline to $0.50, invalidating the current bullish outlook.
Arbitrum (ARB)
ARB has surged by 51% over the past five days, trading at $0.47. This makes it one of the best-performing tokens this week. However, with the 92.65 million ARB token unlock set for May 16, which will release $43 million worth of tokens, price volatility is expected.
Before the token unlocks, ARB can experience further gains. The Ichimoku Cloud is currently below the candlesticks, signaling potential bullish momentum. If this momentum continues, ARB could breach $0.51, heading toward $0.55, with strong buying support potentially driving the altcoin higher in the short term.
However, if ARB fails to maintain its $0.47 support level, a price drop is likely. The upcoming token unlock may exacerbate this decline, potentially pushing ARB down to $0.38. This would invalidate the current bullish outlook and signal a bearish reversal.
Jupiter (JUP)
JUP has experienced a nearly 40% rise in the last few days, currently trading at $0.58. To reach the crucial resistance of $0.68, the altcoin needs an additional 16% push. The current momentum shows potential, but securing 0.57 as support is necessary for further gains.
This week, JUP is set to benefit from a significant development. Jupiter Exchange announced that 2.5% of the commission from jupSOL transactions will be donated to the Jupiter DAO. This new revenue stream could provide increased liquidity and positive sentiment, supporting JUP’s price growth in the short term.
If the new revenue model boosts investor confidence, JUP could break past $0.68, provided it can maintain $0.57 as a support floor. However, if the altcoin fails to secure this level, a drop to $0.47 is likely, invalidating the bullish outlook and erasing recent gains.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
