ERA ripped 72% after a 63.75M token unlock sparked a short squeeze | Credit: Veronica Cestari
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Key Takeaways
BERA surged 72% after absorbing a 63.75 million token unlock, triggering a major short squeeze.
The absence of a Brevan Howard refund boosted confidence, fueling roughly $39 million in spot buying.
BERA remains in a downtrend and must reclaim the $0.98 zone to unlock upside toward $1.38.
BERA, native to the EVM-compatible layer-1 blockchain, Berachain just delivered one of the most violent reversals of 2026.
After weeks of heavy FUD, Bitcoin’s price exploded by 72% over the last 24 hours. As a result, the altcoin reclaimed $1.36 and closed in on a $200 million market cap.
Interestingly, this flipped what many expected to be a liquidity collapse into a textbook “Sell the Rumor, Buy the News” squeeze.
This wasn’t random. It was structural. In this analysis, CCN explains what led to the BERA price surge and what lies ahead for the altcoin.
Berachain Overcomes Feb. 6 Pressure Test
Two major overhangs were cleared on the same day. Interestingly, neither sent the Berachain price chart downwards.
First, the 63.75 million BERA unlock (roughly 41.7% of circulating supply). Typically, most token unlocks drive the price downward.
Instead, on-chain data showed the opposite. BEAR buyers absorbed the supply as large wallets stepped in.
As shown below, BERA has been in a persistent downtrend since mid-November.
The structure shows sustained distribution rather than sharp capitulation, as most of the move lower resulted in a controlled grind.
Amid that, the recent price action near the $0.35 to $0.50 region suggests the market is stabilizing after an extended decline.
Funding rates have remained predominantly negative throughout the downtrend, indicating that short positioning has been crowded.
The deep red spikes in mid-January and again recently show aggressive short exposure, which often precedes sharp short squeezes.
Despite the recent bounce toward the $0.85 area, the broader structure remains fragile unless price can establish a higher low and reclaim prior breakdown levels.
Early backers had the right to request a refund if performance lagged by Feb. 6; however, no refunds were issued.
In markets, silence can be louder than statements. The absence of an exit was interpreted as institutional conviction, and that sentiment shift mattered.
The result: roughly $39 million in net spot buying pressure within 24 hours and a sharp rotation back into BERA as the supply overhang narrative collapsed.
In addition, the surge in buying pressure has driven trading volume to $1 billion.
From a price perspective, if the altcoin’s volume continues to rise, then Berachain’s price might extend its recent breakout.
However, traders might need to watch out. If selling volume outpaces buying pressure, the reverse might be true.
BERA Price Prediction: Higher
From a technical point of view, BERA’s price remains in a clear macro downtrend, defined by a series of lower highs and lower lows within a descending channel.
From the chart below, the recent impulse from the lows produced a wick toward the 0.236 Fibonacci level around $0.98.
However, the Berachain price has struggled to hold above that area and is currently trading back below it, near $0.82.
Structurally, that 0.236 level now acts as immediate resistance, while the $0.33 to $0.50 zone remains the key demand area.
The Bull Bear Power (BBP) histogram shows a strong positive spike, confirming that the recent rally had genuine momentum.
At the same time, the Moving Average Convergence Divergence (MACD) has just flipped bullish with a crossover.
However, this shift is occurring beneath major trendline resistance from the broader descending structure, which limits the bullish outlook unless price can break and hold above the $1 region.
If BERA reclaims and consolidates above the 0.236 level, the next upside targets sit near $1.38 (0.382) and $1.70 (0.5).
On the contrary, failure to do so would likely result in another retest of the lower range.
What Else Is Happening?
The rally isn’t just a squeeze. It’s also narrative evolution.
Berachain’s PoL v2 upgrade now routes 33% of block rewards directly to BERA stakers. In a macro environment still defined by liquidity stress, yield matters.
And Berachain is aggressively offering it, with staking APYs briefly reaching levels that have attracted capital seeking real returns, not just price momentum.
At the same time, ecosystem signals are maturing.
The approval of Ethena’s USDe as collateral for HONEY strengthens the DeFi stack and moves the project further from its early perception toward something structurally investable.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
