Bio Protocol saw a healthy momentum reset on the 1-day timeframe, and a 62% jump in Open Interest in the past 24 hours was one of the factors that signaled imminent bullish strength.
Bio Protocol [BIO] has begun to recover from its deep retracement. The $286 million market cap token retraced deeper than anticipated in a recent AMBCrypto report, where $0.15 was highlighted as an important support.
BIO fell to the base of the rally that began on the 19th of August. In doing so, its market structure on the daily timeframe reverted bearishly. Bitcoin [BTC] decoupled from the stock market, fueling hopes of an altseason.
Ethereum [ETH] saw its validator queue climb to 860k ETH. The Ethereum smart contract EigenLayer saw its Total Value Locked (TVL) reach a record $21 billion, implying ETH is staked at a record pace.
The market leaders, Bitcoin and Ethereum, could help shift the crypto sentiment bullishly, which would positively impact BIO.
Until then, Bio Protocol bulls need to bide their time and claw back some of the gains they lost during the retracement.
The RSI on the 1-day timeframe has reset toward neutral 50 after climbing to 84 two weeks ago. This reflected a healthy reset for the momentum and BIO bulls.
The swing structure was bullish as the price was still above the higher low at $0.1209. However, the internal structure was bearish, but a move beyond $0.18 could change this.
Compared to early August, the OBV was also floating higher, like the price, reflecting that buying pressure has been dominant despite the recent price setback. Continued buying and OBV uptick would signal Bio Protocol strength.
The 4-hour chart indicated that traders should expect bullish strength in the coming days. The OBV leapt higher after the recent setback. So did BIO prices, clearing the bearish order block (cyan) at $0.162-$0.173.
At the time of writing, this zone was being retested as support. The 4-hour price structure was bullish, and more gains appeared likely over the weekend and the next week.
