Berachain (BERA) Price Begins Recovery After Volatile Launch

Key Takeaways

• Berachain (BERA) fell significantly after its launch.
• The price broke out from an ascending parallel channel.
• Is the Berachain price correction finally over?

The BERA price fell by 70% in the few days after its launch, culminating with a low of $4.74 on Feb. 10.

However, it has recovered admirably, creating several higher lows and even breaking out from an ascending parallel channel.

While this is a sign that the increase is impulsive, BERA has yet to clear its main horizontal resistance level at $8.90.

Can BERA break out above this resistance and surge toward new highs, or will the increase be short-lived? Let’s examine the charts to find out.

Berachain Stats

Berachain launched its mainnet on Feb. 6, unveiling its Token Generation Event (TGE) and airdrop. The community had no issues with the airdrop , which allocated roughly 50% of its total for them.

BERA was launched on several well-known exchanges, such as Binance and Coinbase. The price opened at $15 but fell sharply afterward, causing roughly $25 million in long liquidations.

Berachain already has over 10 million weekly transactions and nearly 200,000 weekly addresses.

The mainnet has a Total Value Locked (TVL) of $3.19 billion , led by the Liquid Staking platform Infrared Finance and the Kodiak Decentralized Exchange (DEX).

The number of transactions has been constant since launch, spiking on Feb. 8, while the TVL has increased steadily.

BERA Price Recovers

The BERA price has recovered admirably since its all-time low of $4.74 on Feb. 10. Initially, an ascending parallel channel contained the upward movement.

However, the price broke out from it on Feb. 20, reaching a high of $9.18 the next day.

The high validated the 0.382 Fibonacci retracement resistance level and a horizontal resistance area at $8.90. This now acts as the main barrier to the BERA price movement.

Because of the breakout from the channel, the wave count suggests the increase is impulsive.

More specifically, it shows an extended third wave in a five-wave increase (green). The sub-wave count is in black.

If the count is accurate, the BERA price will break out from the $8.90 resistance area in wave three before validating it as support in wave four.

Then, the fifth and final wave could take the BERA price toward its all-time high of $15.52.

Conversely, failure to break out from $8.90 will put this count at risk, suggesting that the increase is corrective instead. If that happens, a new BERA all-time low will be on the cards.

Breakout Likely

The BERA price has mounted a recovery in the last ten days, breaking out from a corrective pattern.

A daily close above $8.90 could set the stage for an accelerated rally that might lead to a new all-time high.