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crypto.news 2025-05-07 06:28:31

Berachain drops 21% in a week after $2.7B unlock — can bulls defend this critical support zone?

Berachain continues to bleed, down 21% in a week and nearly 40% in 30 days, with technical indicators painting a grim short-term picture. As of press time, Berachain ( BERA ) is trading at $2.88, down more than 80% from its peak of $14.83 and roughly 68% from its most recent local peak of $8.94 on Mar. 29. The sharp drop comes after Boyco Vaults, a pre-launch liquidity program that let users deposit assets in exchange for early rewards, unlocked $2.7 billion in total value locked on May 6. These assets include 2% of BERA’s total supply, A sizable portion of these assets entered the market after the unlock, causing significant selling pressure and sparking volatility in all of the main trading pairs. Just before the unlock on May 4, BERA briefly hit a record low of $2.82 and is still experiencing a strong downward pressure. Despite this, trading volume increased by 105% to $120.7 million over the last day, suggesting that market activity is growing. According to Coinglass data , BERA’s 24-hour derivatives volume increased 71% to $218.3 million, while open interest has decreased 6.3% to $81.4 million. This implies that some traders have exited positions due to the uncertainty. There is a slight bearish bias as shown by a 24-hour long/short ratio of 0.926. You might also like: Paddle Finance launch on Berachain: Liquidity tools for assets most protocols ignore At $2.88, BERA is trading just above important psychological support on the daily chard. Price remains compressed below the 20-day and 50-day moving averages, while Bollinger Bands show a strong contraction, which usually indicates a squeeze in volatility and a potential sharp move ahead. Berachain price analysis. Credit: crypto.news The relative strength index is well into oversold territory at 28.67, suggesting that bearish momentum may be overextended but not necessarily exhausted. However, if there isn’t a volume breakout or verified bullish divergence, any bounce might not last long. If selling pressure persists, BERA risks a breakdown below $2.80, potentially retesting $2.50, a key psychological level and likely next support. A short-term rally toward $4.00 may be possible if bulls can hold back current levels and push BERA back above $3.40, which is the mid-Bollinger Band and the previous support that turned into resistance. Until stronger accumulation appears, the path of least resistance is still downward. Read more: XRP whale wallets surge past 300K — is a breakout on the horizon?

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