Berachain (BERA) Price Analysis

Berachain (BERA) is down almost 15% in the last 24 hours, with its market cap now at $778 million, although its price remains up nearly 20% over the past seven days. This sharp pullback comes after a strong rally between February 18 and February 20, when BERA reached levels above $8.5.

Market Indicators

BERA’s Relative Strength Index (RSI) has dropped from overbought levels, signaling a loss of bullish momentum, while its Directional Movement Index (DMI) shows growing bearish pressure. As BERA navigates this correction phase, it faces key support at $6.1, with potential resistance levels at $8.5, $9.1, and $10 if bullish momentum returns.

BERA RSI Is Dropping Steadily After Touching Overbought Levels

Berachain’s RSI is currently at 50.6, down sharply from 86.7 just two days ago when its price surged above $8.5. RSI is a momentum oscillator that measures the speed and change of price movements, with values above 70 indicating overbought levels and below 30 suggesting oversold territory.

The steep decline in BERA’s RSI reflects a significant loss of bullish momentum after reaching overbought levels. With RSI now at 50.6, BERA is in a neutral zone, suggesting that buying and selling pressures are relatively balanced. If RSI continues to decline below 50, it could signal increasing bearish momentum, leading to a further price drop for BERA. Conversely, if RSI stabilizes and begins to rise, it suggests renewed buying interest.

BERA DMI Chart Shows Buyers Are Losing Control

Berachain’s DMI chart shows its Average Directional Index (ADX) currently at 50.5, after peaking at 60.2 yesterday. The sharp rise in ADX indicates significant trend strength, confirming that BERA has been experiencing strong directional movement. Meanwhile, BERA’s +DI is at 24.4, down from 48.4 two days ago, indicating weakening bullish momentum. In contrast, -DI has risen to 15.1 from 4.9, suggesting growing bearish pressure.

If -DI continues to rise above +DI, it could indicate a bearish crossover, signaling a potential reversal or deeper correction in BERA’s price. However, if +DI stabilizes and moves upward again, it could suggest a continuation of the uptrend.

Will Berachain Fall Below $6 Soon?

Berachain surged 53% between February 18 and February 20, pushing its price above $8.5 after struggling post-airdrop. Currently, BERA is experiencing a downtrend, and if it continues, the price may soon test support at $6.1. A break below this could lead to further declines towards $5.48.

Conversely, if Berachain can regain bullish momentum, it might rise above $8.5 again, potentially testing the next resistance levels at $9.1 or even $10. For a bullish scenario, Berachain needs renewed buying interest and strong upward momentum to confirm the continuation of the uptrend.