The cryptocurrency market witnessed a decline last week as rising U.S. bond yields dampened risk appetite. Bitcoin remained under $95,000, and meme coins like Dogwifhat, Popcat, and Bonk experienced significant losses. The market reacted to strong U.S. labor data, which hinted at the Federal Reserve maintaining its hawkish monetary stance.
Despite the market downturn, Arbitrum, Ondo Finance, and Zetachain stand out as the top cryptocurrencies to watch this week. Here’s why:
1. Arbitrum: Layer-2 Leader Faces Challenges
- Token Unlock: Arbitrum will unlock tokens worth $67 million this week, equivalent to 1.08% of its float. The network has already unlocked 53% of its tokens, with the final release scheduled for April 2027.
- Price Movement: Over the past year, Arbitrum’s token has dropped 70% from its peak in 2024, partly due to losing market share to Base Blockchain. Currently priced around $0.70, it hovers above a critical support level. A drop below this threshold could lead to further declines, potentially reaching $0.4625, last seen in November.
- Market Sentiment: Technical indicators show a bearish trend, with the token trading below its 50-day and 25-day Exponential Moving Averages.
2. Ondo Finance: High-Yield Opportunities Amid Rising Bond Yields
- Token Unlock: Ondo will release tokens worth $2.38 billion this Thursday, representing 133% of its float. This unlock is part of a broader schedule extending until 2029.
- Yield Advantage: Ondo’s stablecoins, USDY and OUSG, offer competitive yields of 4.35% and 3.28%, respectively, potentially benefiting from the shift of investors toward money market funds.
- Technical Analysis: The token has dropped from $2.13 in December to $1.23, trading below key moving averages and its $1.48 resistance level. However, a falling wedge pattern suggests a possible rebound to $1.48.
3. Zetachain: Battling Downtrend Amid Token Unlock
- Market Cap and Unlock: With a market capitalization of $337 million, Zetachain will unlock $145 million worth of tokens this week, equal to 49% of its market value.
- Performance: The ZETA token has declined sharply since peaking at $1.3752 in June, with its DeFi total value locked (TVL) dropping from $16 million in November to $7 million.
- Price Outlook: Currently trading near $0.5328, its lowest level since October, the token remains below all major moving averages. A breach of this support could push prices down to $0.3530.
Key Takeaways
- Market Trends: Rising bond yields and strong U.S. labor data have created headwinds for cryptocurrencies.
- Token Unlocks: Arbitrum, Ondo, and Zetachain face significant price volatility as large token unlocks approach.
- Opportunities Ahead: Despite bearish trends, technical patterns for Ondo and Zetachain hint at potential rebounds.
Investors should keep a close eye on these tokens as market conditions evolve.
