After a recent surge of over 315%, Berachain (BERA) is now facing strong downside pressure after the price fell for the second consecutive day. This pullback shifted market sentiment and reduced participation, while opening the door for another potential drop.
At the time of writing, BERA had lost over 18% of its value in just 24 hours, with the altcoin trading near the $0.655-level. Alongside the falling price, market sentiment has also weakened significantly. The same can be evidenced by the trading volume dropping by 75% to $331 million.
Beerachain (BERA) price action eyes another 45% fall
On the daily charts, BERA appeared to be on a strong downtrend and looked poised for a massive downside move in the coming days. It also suggested that the altcoin’s latest decline pushed the asset lower, causing it to lose control of the local support level at $0.706.
Source: TradingView
If BERA fails to reclaim this local support, it could see a further decline of 45% and may reach the $0.35-level in the coming days. However, a potential reversal would only be possible if the asset’s daily candle moves above the $0.777-level.
At press time, BERA’s Average Directional Index (ADX) had a reading of 33.65, indicating strong directional strength. Since it was above the key threshold of 25, it hinted at a strong ongoing trend.
In addition to the price action, on-chain analytics tool DeFiLlama disclosed that over the last three days, Berachain’s Total Value Locked (TVL), chain revenue, and DEX volume all declined too. This seemed to be illustrative of weakening user activity and a drop in overall market confidence around the ecosystem.
Source: DeFiLlama
A sign of mixed sentiment
Derivatives data from Coinglass revealed that BERA investors and traders flashed mixed sentiment, with some appearing to accumulate while others were strongly betting on short positions.
According to Spot inflow/outflow data, over the last 24 hours, more than $644k worth of the crypto has flowed out – A sign of potential accumulation.
Source: Coinglass
Meanwhile, traders appeared to be strongly betting around the $0.708-level on the upside, which now acts as a key resistance for BERA. At this level, traders built approximately $3.71 million worth of short-leveraged positions, reflecting strong bearish conviction.
On the lower side, some traders placed bets around the $0.64 level, which now serves as a strong support zone. Traders built about $641k worth of long-leveraged positions at this level.
Source: Coinglass
Overall, an analysis of long and short positions suggested that bearish traders remained dominant across the market.
Final Summary
- The 18% drop in Berachain (BERA) has potentially opened the door for a further 45% price decline.
- Derivatives data hinted at mixed sentiment among traders and investors, while on-chain metrics pointed to market weakness.