Bio Protocol (BIO) has experienced a significant upward trend, breaking past crucial resistance levels over the past three weeks with a remarkable 131% rally in the last week alone. While the overall market outlook for BIO remains bullish on higher timeframes, the token has begun to show signs of exhaustion following its recent ascent.
Recent Momentum and Resistance Challenges
The bullish momentum for BIO has been consistent for nearly two weeks, initiated by a strong move above the $0.08 local high in early August. This rally has been supported by elevated trading volume, as indicated by a rising On-Balance Volume (OBV). The Relative Strength Index (RSI) also moved into overbought territory, reaching near 74, further confirming the strong buying pressure. However, the token faced a notable rejection at the $0.268 resistance level in the past 24 hours. Historically, RSI readings above 80 have often preceded a retracement for BIO, suggesting a potential pullback could be on the horizon.
Anticipating a Retracement and Key Support Zones
Despite the robust rally, the recent rejection at $0.268 hints at a possible short-term retracement. Traders are advised to monitor key Fibonacci retracement levels derived from the recent surge from $0.12 to $0.264. These levels suggest significant support zones between $0.151 and $0.176, specifically at the 61.8% ($0.176) and 78.6% ($0.151) marks. Moving averages could also provide dynamic support in the coming days, reinforcing the $0.151-$0.175 region as a crucial area for potential accumulation.
Short-Term Targets and Market Influences
Analysis of the 2-week Liquidation Heatmap reveals short-term price targets, with small clusters of liquidity identified around $0.21-$0.216 and $0.255. Beyond these immediate targets, the broader cryptocurrency market, particularly Bitcoin (BTC), will play a pivotal role in BIO's trajectory. A significant correction in Bitcoin, for instance, below $115k, could exert downward pressure on BIO, potentially drawing prices towards a denser magnetic zone around $0.18. Conversely, a positive movement in Bitcoin over the weekend could bolster market sentiment and further empower BIO bulls.
