Key Takeaways
Bio Protocol prices have broken past key resistance levels over the past three weeks. The failure to breach $0.268 on the first try indicated a potential retracement to the $0.151-$0.175 support zone.
Bio Protocol [BIO] rallied 131% in the past week and was up 14.2% over the past 24 hours, at press time. The token faced a pullback from the $0.268 resistance level, but the higher timeframe outlook remained bullish.
In other news, Bio Protocol has agreed to preliminary terms to fund an expansion of the human clinical trial. The study conducted is on the effect of brain health supplement products on humans.
Rally strengthens, but signs of exhaustion appear
Source: BIO/USDT on TradingView
On the 1-day timeframe, BIO has stuck to its bullish structure for nearly two weeks now. Its move above the local high at $0.08 on the 7th of August initiated the current rally.
Trading volume stayed elevated, reflected by the OBV trending higher through August. The RSI moved into overbought territory near 74, confirming bullish momentum.
Historically, when RSI crossed 80, BIO retraced. It was possible that another such pullback would arrive. Already, the past 24 hours of trading saw BIO prices rejected from the $0.268 resistance level.
How deep could the BIO retracement go?
Source: BIO/USDT on TradingView
A set of Fibonacci retracement levels was plotted on the 4-hour chart using the recent rally from $0.12 to $0.264. It showed that the 61.8% and 78.6% levels were at $0.176 and $0.151, respectively.
Over the next few days, the moving averages could also serve as a dynamic support. Hence, traders wanting to buy BIO could keep an eye on the $0.151-$0.175 region.
Heatmap clusters reveal short-term targets
Source: CoinGlass
The 2-week Liquidation Heatmap showed small clusters of liquidity at $0.21-$0.216 and at $0.255. These would be the short-term price targets. A Bitcoin [BTC] correction below $115k could send BIO prices reeling.
In this scenario, the magnetic zone at $0.18, which was denser than the nearby pockets, could pull prices lower.
If BTC can climb higher over the weekend, it could boost market-wide sentiment and help BIO bulls, too.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
