Market conditions improved last week, and with Bitcoin breaking through $100,000 again, it became a positive signal for many altcoins. However, some cryptocurrency tokens have the potential for additional growth due to major network developments.
BeInCrypto analyzed three altcoins that investors should pay attention to.
Sonic (S) (Previous Name: Phantom)
Sonic's price has risen 22% since early this month, reaching $0.60 for the altcoin. However, despite recent gains, Sonic has not fully recovered from the losses experienced in March, and price movements are still under pressure from previous declines.
The sharding feature scheduled for release on May 15th could play a crucial role in Sonic's recovery. This upgrade is expected to increase transaction speed and reduce network congestion, potentially boosting the altcoin. If improvements are made, Sonic could rise to $0.74, recovering its March losses.
However, if Sonic experiences short-term profit-taking, it may fail to break through the $0.60 resistance. Falling below this level could cause Sonic to drop to $0.50, invalidating its current positive outlook.
Arbitrum (ARB)
ARB has risen 51% over the past five days, trading at $0.47. It is one of the best-performing tokens this week. However, a token unlock of 92.65 million ARB tokens is scheduled for May 16th, with tokens worth $43 million set to be released, which could lead to price volatility.
Before the token unlock, ARB may experience additional gains. The Ichimoku cloud is currently below the current candlestick, indicating potential upward momentum. If this momentum continues, ARB could break through $0.51 and move towards $0.55, with strong buying support potentially pushing the altcoin higher in the short term.
However, if ARB fails to maintain the support level of $0.47, a price decline is expected. The upcoming token unlock could exacerbate this decline, potentially pushing ARB down to $0.38. This would invalidate the current positive outlook and signal a bearish reversal.
Jupiter (JUP)
JUP has risen almost 40% over the past few days and is currently trading at $0.58. To reach the important resistance level of $0.68, the altcoin needs to rise an additional 16%. The current momentum shows potential, but securing $0.57 as a support level is necessary for further gains.
This week, JUP is set to benefit from an important development. Jupiter Exchange announced that 2.5% of jupSOL trading fees will be donated to the Jupiter DAO. This new revenue stream could increase liquidity and provide a positive sentiment, supporting JUP's short-term price increase.
If the new revenue model increases investor confidence, JUP could break through $0.68, provided it maintains $0.57 as a support level. However, if the altcoin fails to secure this level, it could drop to $0.47, invalidating the positive outlook and erasing recent gains.
