Berachain (BERA) Mainnet Debuts With Airdrop Allocation — Price Drops From $15 Amid Long Squeeze

Key Takeaways

• Berachain deployed its Mainnet for public use and announced 15.8% of its total supply for airdrop.
• The volume spiked to $2.77 billion as participants interacted with the token on different exchanges.
• A massive long squeeze sent BERA tumbling to $7.68. Is this a dip-buying opportunity or a warning sign?

Berachain (BERA), the project that operates using the Proof of Liquidity (PoL) consensus mechanism officially launched its Mainnet on Thursday, Feb. 6. Alongside the launch, the Berachain Foundation unveiled its much-anticipated Token Generation Event (TGE) and airdrop allocation for eligible users.

It also revealed users can now view their airdrop allocations, with the claim window open. Trading for BERA has already gone live on the spot and perpetual markets of major exchanges such as Binance, Bybit, and Coinbase.

Initially opening at around $15 on these platforms, the Berachain token price has since taken a steep nosedive, dropping to $7.68 at the time of writing. The crash was accompanied by a long squeeze, liquidating overleveraged traders who bet on a price surge.

So, what’s driving this sharp decline, and what’s next for BERA? Here’s a full breakdown of the latest developments.

Berachain Launches Mainnet, Airdrop Live

According to Berachain, created by the team behind Bong Bears NFT, it allocated 15.8% of BERA’s total supply for airdrops. Investors will receive 34.3%, while core contributors get 16.8%.

Details from its tokenomics reveal that the project set aside the rest for research and community initiatives.

“Airdrops are all about rewarding the community that helped your project win. Thank you to everyone who’s been part of the vision, looking forward to the rage in my DMs/comments, and can’t wait to make this chain real.” Smokey  The Bera, one of the project’s founders said amid the launch.

While some users applauded the project for the distribution, others felt it was not fair enough. Following the development, some traders decided to try and profit from BERA’s price action.

Traders Blindsided by BERA’s Price Crash

Based on Coinglass data, most opened long positions with the expectation that the price will increase. But unfortunately, these participants were left out in the cold as the Berachain token price plummeted by double-digits.

The price drop triggered a long squeeze, forcing traders to sell and cut their losses. In total, the BERA liquidation amounted to $25 million with longs taking a lion’s share of the wipeout.

Meanwhile, Santiment data shows a surge in BERA’s trading volume, now at $2.77 billion. This spike indicating intense buying and selling around the token.

Besides showing the level of interest around a cryptocurrency, volume can also detect potential price movements. Typically, rising volume alongside increasing price offers strength to the uptrend.

But in this situation, the increase in volume accompanied by the declining BERA price could exert more downward pressure on the token.

BERA Price Discovery Begins

From a technical perspective, it might be too early to predict how the Berachain token price might fare.

But as of this writing, the cryptocurrency seems to be in price discovery mode as buyers and sellers are yet to agree on a fair value.

Despite that, the 30-minute chart shows that the Relative Strength Index (RSI) is below the neutral 50.00 point. This indicates that the momentum around BERA is bearish.

If sustained, this could drive the price further lower from $7.68.

However, if market participants begin to buy the dip in large volumes, this trend might change. In that situation, BERA’s price could rally in the $15 direction again.