Berachain price stunned the crypto market after a sudden and sharp rally. BERA surged nearly 210% during Wednesday’s intraday high before pulling back.
The explosive move triggered widespread interest, yet on-chain data suggests the rally was largely speculation-driven rather than supported by sustained capital inflows.
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What Caused the BERA Price To Rally?
The primary catalyst behind the BERA rally appears to be a major short squeeze. Funding rates fluctuated violently as bearish traders were caught off guard. Reports showed funding falling as low as negative 5,900%, signaling an extreme imbalance in derivatives positioning.
As shorts were liquidated, trading volume surged to $2.23 billion within 24 hours. This wave of forced buying amplified volatility and accelerated price appreciation. Short squeezes can create explosive upside, but they rarely provide long-term structural support for crypto price trends.
BERA Trading Volume. Source: CoinglassWhy Should BERA Traders Be On Alert
The Chaikin Money Flow indicator offers critical insight into Berachain’s macro momentum. Despite the dramatic price increase, CMF remained below the zero line. This reading signals that capital outflows continued to dominate the asset during the rally.
Additionally, a bearish divergence formed on the chart. While the BERA price printed a higher high, the CMF posted a lower high. Such divergences often precede corrections, as weakening inflows fail to validate rising price action. This setup increases the probability of downside pressure returning.
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BERA CMF. Source: TradingViewDerivatives data suggest that long traders may now face elevated risk. As price momentum weakens, leveraged long positions could become vulnerable to liquidation. Market heat maps indicate a significant liquidation cluster just above $0.620.
A move below $0.626 could trigger approximately $5.26 million in long liquidations. Cascading liquidations often accelerate downside pressure in volatile altcoins. If selling intensifies, retail traders holding aggressive long exposure may experience amplified losses.
BERA Liquidation Map. Source: CoinglassBERA Price Could Face Correction
BERA price trades at $0.823 at publication after rallying nearly 210% during Wednesday’s intraday high. As the spike faded, bullish expectations cooled rapidly. Price retracement suggests that momentum traders have begun locking in gains.
Given the speculative nature of the surge and the bearish CMF divergence, further downside appears likely. A confirmed break below $0.795 support could send BERA toward $0.620. That decline would activate previously identified liquidation clusters and potentially extend losses toward $0.438.
BERA Price Analysis. Source: TradingViewAlternatively, renewed investor confidence could stabilize the price near $0.795. If inflows strengthen and speculative pressure subsides, BERA may rebound toward $1.077. A sustained move above that level would invalidate the bearish thesis and restore upward momentum.
Source: https://beincrypto.com/whats-next-for-berachain-bera-price/
