Berachain’s native token, BERA, saw a 74% increase in just a few days. Trading volumes surged to around $2 million, and its price is currently at $0.75, still far from its all-time high of $1.43.
The immediate trigger for BERA’s rally was a 5,900% drop in short-term rates, revealing that these positions were excessively leveraged. This prompted many traders to close their positions, catapulting BERA’s price up 74%.
At the same time, trading volumes exceeded $1 billion and, within a 24-hour window, reached nearly $2.23 billion, intensifying both the momentum and the volatility.
However, beyond the technical component, a narrative also emerged that helped sustain the movement. Several analyses highlighted Berachain’s strategic shift towards promoting applications that generate real and sustainable revenue, a vision summarized by the internal motto “Bera Builds Businesses.” Thus, the focus began to shift from purely inflationary or speculative dynamics towards models with more tangible on-chain value capture.
Possible scenarios for Berachain
After such a vertical advance, the market typically faces three possible paths. On the one hand, a consolidation phase could occur if BERA manages to hold the support zone between $0.74 and $0.83, moving sideways while excessive leverage is cleared. In that scenario, healthy daily volumes above $500 million would suggest digestion of the move rather than capitulation.
On the other hand, if capital flow remains strong, the price could attempt to break through the resistance at $0.98 and project toward the $1.38–$1.75 range. However, the risk does not disappear, as a clear break below $0.79 could trigger stop-loss orders and further liquidations, accelerating a correction toward $0.62, $0.43, or even a retest of the $0.35 zone.
In the short term, the risk is asymmetrical. The same funding anomalies that fueled the rally could backfire if buying pressure dries up. Furthermore, the recent $BERA airdrop on February 6 acted as a liquidity event, likely adding selling pressure during the volatility cycle.
In the longer term, projections vary widely, reflecting how early the token’s development still is. While some models propose modest targets of a few dollars, others are much more ambitious; bearish scenarios, on the other hand, envision a return to the $0.30–$0.40 range.
