Here’s why Bio Protocol rallied over 70% today

Bio, the native token of the BIO protocol of the Desci platform, rose after the project was expanded with setting up for Bio and other ecosystem tokens on the Ethereum Minnet.

Bio Protocol (BIO) shot no less than 71.6% to a highest point in five months of $ 0.103 to 7 August before it went back for part of its profits and settled at $ 0.084 from the moment of printing. Market capitalization was $ 164 million, an increase of $ 124 million yesterday.

The increase in bio took place in a trade environment with a high volume, with almost $ 470 million in tokens changing the owner, an increase of more than 2,100% compared to the previous day.

Why is Bio going up?

Bio Crypto gathered after the Bio protocol confirmed It had expanded the setting for his Bio -Token and Biodao -Tokens to the Ethereum Minnet.

For the non-inaugurated, bio functions as the native token of BIO protocol, a decentralized science (DESCI) platform that finances and promotes biotech research in areas such as lifetime, women’s health and synthetic biology by community-transferred biodaos.

When users set bio and related ecosystem tokens, they earn BIXP points. These points offer suitable for the ignition sales of the platform, which offer early access to token launches of emerging projects within the Bio Protocol Network.

From the moment of the press, more than 100 million bio -tokens had been released on Ethereum.

The last expansion follows a strong debut for deporting on the basis, whereby more than 25 million bio was locked up within a few days of launch.

By locking tokens for discontinuation of rewards, holders effectively reduce the circulating supply that is available at trade fairs. If the demand for bio continues to rise, driven by stimuli such as BIXP and access to inflammatory sales, this supply contraction can increase the scarcity and reinforce upward price movements, especially during periods in which there is a strong market sentiment.

Improve network activity and market sentiment

Activity at the chain on the Bio protocol has also seen a remarkable increase in the past day. Data from santiment show that daily active addresses on the network have increased by more than 370% in the last 24 hours, and 859 reached at the time of the press compared to 180 the day before.

An increase in daily active addresses usually means that more users were busy with the protocol, which is generally a bullish sign and can indicate a growing acceptance or speculative importance.

The weighted social sentiment from Bio Protocol also climbed deeper in the past day, indicating that the perception of the stores of the token has also been improved.

Bio -price analysis

Bio is located in the late stages of forming a classic reversing pattern with double bottom on the daily graph. The first low point formed in April of $ 0.041, followed by a rebound that was around $ 0.103, determining the neckline of the formation.

The second low point took place at the end of June near $ 0.042, after which Bio came sharply and broke shortly above the neckline on August 7 before he slipped back. This series has produced the characteristic “W” shape of a double bottom. A persistent daily close to above $ 0.103, supported by a strong volume, would confirm the pattern and indicate a bullish trend removal.

Momentum signals have become supportive. The 20-day simple advancing average has crossed over the 50-day, a bullish crossover that suggests that the short-term momentum is now exceeding the medium term in the medium term. The Supertrend indicator has also turned green as the price above it moved, which enhances the bullish bias.

In the meantime, the relative strength index has fallen back to 64 after a short territory, which indicates that the recent pullback can be a natural correction after a strong rally instead of the start of a downward trend.

Based on the above setup, the immediate resistance is currently at the neckline near $ 0.103. A decisive outbreak above this level could cause a movement to $ 0.164, the measured purpose derived from the height of the double bottom formation.