Berachain breaks its downtrend with renewed strength | Credit: Veronica Cestari
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Key Takeaways
Berachain has broken out of its downward channel, with the BBP flipping positive.
A negative funding rate alongside rising prices suggests a potential BERA short squeeze.
ERA could climb past $2.76 resistance toward $4, though failure to hold pressure risks a decline.
Corrections often rattle the market, but Berachain (BERA) has broken out of its downward channel, rekindling optimism among traders.
While many altcoins slid during the recent crash, the Berachain price chart defied the trend and climbed to $2.50.
Some skeptics may dismiss the move as a fakeout, but multiple indicators suggest otherwise, pointing to the possibility of further upside.
Berachain Bulls Regain Control
On the 4-hour chart, BERA’s price previously dropped from $2.74 to $2.24. However, as of this writing, the cryptocurrency has broken out of its pattern of lower highs and lower lows, signaling a potential shift in momentum.
Amid this shift, the Bull Bear Power (BBP) has flipped from negative to positive territory. The rise in the BBP reading indicates that buyers are regaining control.
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This shift also suggests that BERA could continue climbing, with the next resistance around $2.74, the recent swing high.
If bulls sustain the pressure and push through that level, the price could extend toward the $3.00 psychological mark. However, this will only happen if bears remain weak.
If bears outpace bullish power, the Berachain price chart might change its course, possibly retesting the support near $2.24, which previously acted as the local low.
Amid this setup, the funding rate has flipped negative. Typically, a negative funding rate means short sellers are paying longs to keep positions open.
With BERA’s price rising at the same time, bears are effectively losing out, while buyers gain the upper hand.
This position signals that sentiment may be shifting, making the Berachain price chart lean even more bullish as shorts get squeezed and momentum favors the upside.
On the daily chart, BERA’s price appears to be completing a U-shaped recovery, a pattern linked to trend reversals and sustained upside.
The Money Flow Index (MFI) has climbed, supporting this outlook, indicating rising inflows and strengthening demand.
At the same time, the MACD has formed a bullish crossover, reinforcing the case for continued momentum. These signals suggest that the BERA token may prepare for a more extended rally if buyers maintain control.
The Fibonacci levels offer more insight into potential price targets. As seen below, BERA’s price is on the verge of breaking above the resistance at $2.76.
Once that happens, the cryptocurrency’s next target could be around $3.52. In a highly bullish case, it could rally to $4.
However, a lack of buying pressure could cause the BERA token to slide below the support at $2.28. If that happens, the market value could decline to $1.51
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.
