Arbitrum and Injective in Plunge Crisis, Bitcoin Cash Attempts Rebound

▲ Arbitrum (ARB), Injective (INJ), Bitcoin Cash (BCH) / AI-generated image

The cryptocurrency market in the third week of February is facing a critical technical inflection point, marked by the risk of further declines in Arbitrum (ARB) and Injective (INJ) alongside a rebound attempt by Bitcoin Cash (BCH).

According to crypto-focused outlet BeInCrypto on February 16 (local time), Arbitrum, Injective, and Bitcoin Cash were selected as the altcoins to watch in the third week of February. Overall investor sentiment in the crypto market remains subdued, but future direction is expected to depend on individual technical trends and whether external catalysts are reflected in prices.

Arbitrum continues to endure downward pressure while maintaining a persistent downtrend. The token is currently trading around $0.1134, with the decline that began at $0.2261 showing no signs of stopping. Key resistance levels are positioned at $0.1255, corresponding to the 0.236 Fibonacci retracement, and $0.1447, aligned with the 0.382 Fibonacci retracement. If Arbitrum fails to hold the $0.1074 support level, there is a significant risk of falling to its all-time low of $0.0944, potentially entering a new price discovery phase.

Injective is also dominated by bearish momentum and remains highly correlated with Bitcoin. After being rejected at $5.924, Injective has fallen to around $3.134. With a correlation coefficient of 0.98 with Bitcoin (BTC), any continued weakness in Bitcoin would likely result in further downside for Injective. If the $3.036 support level breaks, losses could extend to $2.650 and even $2.500. To establish a reversal, the token must decisively reclaim the $3.662 level.

In contrast, Bitcoin Cash is attempting a rebound based on technical improvements and upcoming events. After initiating a relief rally from $423.0, Bitcoin Cash recovered to $558.3 and secured the 0.786 Fibonacci retracement level at $541.8 as support. Anticipation surrounding the Toronto meetup scheduled for February 17 and the LAYLA upgrade set for May is serving as bullish catalysts. If BCH breaks above the current resistance at $574.1, it is expected to target further gains toward $609.8 and $649.6.

As major altcoins follow divergent technical paths, this week’s market trajectory will likely hinge on Bitcoin’s volatility and the extent to which individual project catalysts are priced in. Arbitrum and Injective are in survival mode, striving to defend key support levels, while Bitcoin Cash faces a critical test of trend reversal through a resistance breakout. Investors should closely monitor indicators for signs of oversold relief and changes in trading volume while formulating cautious strategies.

Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses incurred based on it. The information provided should be interpreted for informational purposes only.