Bio Protocol (BIO): The price threshold then determines the next trend

Bio Protocol (BIO) is showing signs of bounce back after a deep fall. The Token with a market capitalization of 286 million USD has adjusted more than forecasted in a recent report by Bitcoin Magazine, where the threshold of 0.15 USD is considered a key support level.

After falling back to the starting zone of the rally from August 19, the daily market structure of BIO has shifted to a downtrend. Meanwhile, Bitcoin (BTC) unexpectedly decoupled from the stock market, sparking hopes for a new "altseason."

On the contrary, Ethereum (ETH) recorded a validator queue (increase to 860,000 ETH. Notably, the EigenLayer smart contract has brought Ethereum's Total Value Locked )TVL( to a record level of 21 billion USD, reflecting an unprecedented staking boom.

With the guidance of Bitcoin and Ethereum, the sentiment in the cryptocurrency market can improve, thus creating positive momentum for BIO. During this period, the bulls of Bio Protocol need patience to gradually bounce back their position after the recent correction.

The Way Forward for Bio Protocol

The RSI index on the daily chart has cooled down to the neutral zone around the 50 mark, after previously peaking at 84 two weeks ago. This is considered a healthy correction, helping to balance momentum and providing positive signals for the BIO bulls.

![])https://img-cdn.gateio.im/webp-social/moments-4bd73164a5cd3326b98d1526ffce6ea4.webp(Daily BIO/USDT Chart | Source: TradingviewThe prevailing trend still maintains a bullish inclination as the price remains above the higher low at 0.1209 USD. However, in the short term, the local structure leans somewhat towards a fall, and only a decisive breakthrough above 0.18 USD would be strong enough to reverse the situation.

Compared to the beginning of August, the OBV indicator has been continuously rising along with the price, indicating that buying pressure is prevailing despite the recent corrections. If the capital flow continues to be sustained and OBV maintains its upward momentum, the strength of Bio Protocol will be significantly reinforced.

![])https://img-cdn.gateio.im/webp-social/moments-963a97565d2e2b641be88be8ef3862a7.webp(BIO/USDT chart 4-hour | Source: TradingviewOn the 4-hour timeframe, technical signals reveal a bullish outlook in the coming days. OBV has bounced back strongly after the correction, while the price of BIO has also broken through the resistance zone of 0.162–0.173 USD )cyan( and is currently retesting this area as a support level.

With the 4-hour price structure leaning towards an increase, the BIO scenario extending the bounce back over the weekend and moving into next week is becoming more optimistic.

SN_Nour