Altcoin Market Volatility: Arbitrum, Injective, and Bitcoin Cash Poised for Breakout?

The altcoin market has been experiencing a prolonged period of volatility, with major tokens approaching critical technical points. As the market continues to navigate this uncertainty, several key assets have emerged as potential breakout candidates.

One such asset is Arbitrum (ARB), which has been trending downward since its peak at $0.2261. Based on Fibonacci retracement levels, the nearest resistance for ARB is at $0.1255, while the next important supply zone is at $0.1447. The CMF indicator suggests that there is still capital outflow and no significant accumulation has been seen.

In order to change its market structure, ARB needs to print a firm daily close above $0.1255 to reclaim short-term control. A confirmed breakout above $0.1447 would signal a broader trend reversal, with targets towards $0.1758 (0.618).

Another altcoin worth monitoring is Injective (INJ), which has been experiencing a sharp decline since its peak at $5,924. Based on Fibonacci retracement levels, the nearest resistance for INJ is at 0.382 ($3.275), while the stronger supply zone is at 0.618 ($3.662). As the price is still stuck below both levels, the short-term momentum remains skewed to the downside.

Bitcoin Cash (BCH) is also identified as a potential breakout candidate, which has been trending upward since its bounce from $423.0. Based on Fibonacci retracement levels, the nearest resistance for BCH is at $574.1, while the 1.0 retracement level stands at $541.8. The MFI indicator suggests that there is fairly healthy momentum, but not overwhelming.

The Bitcoin Cash community meeting in Toronto on February 17 will discuss BCH technology and the major improvements coming with the LAYLA upgrade in May, which could potentially catalyze a recovery for BCH.