Berachain (BERA) Price Falls 30% — Approaches Critical $5.50 Support Level

Key Takeaways

• Berachain’s (BERA) price has fallen since Feb. 20.
• The decrease is contained inside a parallel channel.
• How long will Berachain’s decline continue?

Berachain (BERA) launched on Feb. 6 and immediately fell, declining by nearly 70%. While it mounted a recovery afterward, the increase ended with a high of $9.18 on Feb. 20. BERA has fallen since, albeit doing so gradually.

The BERA price is approaching $5.50, the final support area before a new all-time low.

Let’s examine the charts and see if the price can bounce or if it will break down instead.

BERA Price Recovers

The BERA price has recovered since falling to its all-time low of $4.74 on Feb. 10. The upward movement accelerated after the price broke out from a symmetrical triangle pattern, culminating with a high of $9.18 on Feb. 20.

Berachain’s price has fallen since, confirming the $8.80 area as support and falling inside a descending parallel channel. It is currently at the channel’s midline.

The upward movement resembles a completed A-B-C structure, where wave B is a symmetrical triangle.

While technical indicators show some bullish signs, such as the bullish divergences in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD), they are both falling and below their bullish thresholds at 50 and 0, respectively.

Therefore, the most likely outlook is a decline toward the channel’s support trend line at $5.50, coinciding with a horizontal support area.

What’s Next for BERA?

The long-term trend is likely bearish since Berachain’s upward movement is an A-B-C structure. This means the increase is part of a long-term wave B (red), and the BERA price has now started wave C.

If this is the case, the BERA price could fall to a new all-time low of $3.28. The target is created by giving wave C the same length as wave C.

A possible sub-wave count is in black, where the descending parallel channel contains sub-wave one.  A breakdown from the channel could mark the start of wave C, accelerating the downward movement.

Alternatively, a close above the $8.80 resistance will mean the Berachain upward movement is impulsive and could lead to new highs.

This scenario is unlikely because of the bearish price action and wave count.

New Lows Incoming

Berachain has been mired in a bearish trend since Feb. 20. A breakdown from the parallel channel will accelerate the rate of decrease toward new lows.

If the movement goes as predicted, BERA could bottom at $3.28.