Berachain has surged over 35% in the past week, showing renewed strength following a consolidation phase.
Currently trading at $7.89, Berachain (BERA) is approaching a significant resistance level at $8.34. A breakout above this threshold could lead to further gains, potentially targeting the psychological milestone of $10. The relative strength index has risen to 59, nearing overbought conditions yet still indicating room for further upside.
Immediate support is positioned at $6.53 with a stronger base at $5.14. Bollinger Bands suggest that the price movement is narrowing, while the 10-day and 20-day moving averages reinforce the bullish outlook, signaling additional upward momentum.
The moving average convergence/divergence indicator remains positive at 0.282, suggesting sustained bullish momentum, although a 33% decline in 24-hour trading volume to $187.7 million indicates a slight easing in buying pressure.
Berachain’s optimistic trend is bolstered by on-chain metrics, with total value locked rising to $3.14 billion, nearing its record high of $3.26 billion achieved in March. Between March 23 and March 25, decentralized exchange trading volume skyrocketed from $36 million to $132 million. Moreover, the network’s stablecoin market capitalization has reached a new peak of $1.2 billion.
The recent price rally was fueled by the launch of Berachain’s proof-of-liquidity system, which broadens governance and emissions beyond its native BEX pools. This system allows users to earn rewards through new vaults managing BGT emissions, generating active incentives of $355,000 shortly after launch, with top vaults offering annual percentage rates exceeding 200%.
Despite the recent gains, Berachain’s price remains 45.8% below its all-time high of $14.83. Traders are keenly observing whether it can overcome the $8.34 resistance level. A sustained close above this point could propel prices higher; conversely, failing to hold may result in a pullback towards $6.53 or $5.14. The trajectory of the RSI will likely influence whether the current rally continues or if profit-taking ensues.
