Significant Dip in Berachain Value by 21% Over a Week Following $2.7B Unlock: Will Bulls Manage to Safeguard This Crucial Support Level?
Cryptocurrency Crash: Berachain Plummets 40% in 30 Days, Here's What Went Wrong
It's a brutal week for Berachain, losing 21% of its value in just seven days and near a staggering 40% drop in a month. The digital coin, known as BERA, is currently trading at $2.88, down more than 80% from its peak of $14.83 and about 68% from its recent local peak of $8.94 on Mar. 29.
The recent slump can be traced back to the unlocking of $2.7 billion in total value locked by Boyco Vaults, a pre-launch liquidity program that offered early rewards for deposited assets, which took place on May 6. A significant portion of these assets flooded the market, causing substantial selling pressure and a spike in volatility across all major trading pairs.
Just before the unlock on May 4, BERA briefly hit an all-time low of $2.82, and it's still battling strong downward pressure. However, trading volume has surged by 105% to $120.7 million over the past day, indicating an increase in market activity. According to Coinglass's data, BERA's 24-hour derivatives volume escalated 71% to $218.3 million, while open interest declined 6.3% to $81.4 million. This suggests that some traders may have exited their positions due to market uncertainty, but there is a slight bearish bias with a 24-hour long/short ratio of 0.926.
Despite the gloomy picture, there's a slight glimmer of hope. BERA is trading just above a crucial psychological support level on the daily chart. The price remains compressed below the 20-day and 50-day moving averages, and Bollinger Bands suggest a contraction in volatility. This usually indicates a potential sharp move ahead, though it's essential to note that if a volume breakout or bullish divergence is not verified, any bounce might be short-lived.
If the selling pressure persists, BERA faces the risk of breaking below $2.80 and potentially retesting $2.50, a key psychological level that may function as the next support. On the flip side, a short-term rally toward $4.00 is possible if bulls can prop up current levels and push BERA above $3.40, the mid-Bollinger Band, which was previously a support turned resistance. Until clear signs of accumulation emerge, the path seems to remain skewed downward.
Paddle Finance Launch on Berachain: Gaming the Assets Traditional Protocols Ignore
In other news, there's excitement brewing with the upcoming launch of Paddle Finance on Berachain, offering liquidity tools for assets often overlooked by other protocols. Only time will tell if this fresh development can provide a morale boost for BERA and the Berachain ecosystem.
XRP Whale Wallets Surge to Over 300K: Giant Leap Toward a Potential Breakout?
Stay tuned for more updates as the dynamics of the crypto market continue to reveal intriguing twists and turns.
Insights- Token Unlock Events: Historically, significant token unlock events often lead to increased selling pressure and price declines, as observed with the recent Berachain (BERA) crash in May 2025.- Support Level Breakdown: Technical analysis can provide valuable insights into potential price movements. In the case of Berachain, a breakdown of key support levels (such as $3.20) contributed to the accelerated sell-off leading to the recent all-time low.- Bearish Indicators: Indicators like the Relative Strength Index (RSI) and Directional Movement Index (DMI) provide valuable insights into market sentiment. A bearish reading (such as the RSI being well into oversold territory) suggests that bearish momentum may be overextended but not necessarily exhausted.- Market Sentiment: Overall market sentiment plays a crucial role in price movements. In the case of Berachain, investors are wary of further downside due to high circulating supply and recent bearish technical patterns.
- The recent cryptocurrency crash has caused Berachain (BERA) to plummet by 40% over the past month, with its current trading price at $2.88.
- The slump can be attributed to the unlocking of $2.7 billion in total value locked by Boyco Vaults, which flooded the market and caused significant selling pressure.
- Despite the gloomy picture, a slight glimmer of hope is visible as BERA is trading just above a crucial psychological support level.
- The upcoming launch of Paddle Finance on Berachain aims to offer liquidity tools for assets often overlooked by other protocols.
- In the crypto world, XRP whale wallets have surged to over 300K, raising questions about a potential breakout.
- Insights from the Berachain crash show that significant token unlock events can lead to increased selling pressure and price declines.
- Technical analysis reveals that a breakdown of key support levels and bearish indicators may suggest overextended but not necessarily exhausted bearish momentum for BERA.
