Date: Mon, February 24, 2025 | 05:47 PM GMT
In the cryptocurrency market, Berachain, an EVM-compatible Layer 1 blockchain, has been in the spotlight as its recently listed native token, BERA, has shown strong momentum despite a broader bearish market outlook.
Over the past 24 hours, BERA has surged by over 3%, with an impressive weekly performance of 13%, currently trading around $7.05.
Source: Coinmarketcap
On-Chain Metrics Growth
Berachain has demonstrated remarkable growth in network activity. According to data from DeFiLlama , Berachain’s Total Value Locked (TVL) has reached $3.35 billion, making it the 6th largest DeFi protocol, surpassing major competitors like Base and Arbitrum.
Source: Defillama
This growing adoption highlights increasing investor confidence in Berachain’s ecosystem.
Cup and Handle Pattern Formation
On the 2-hour chart, BERA has formed a Cup and Handle pattern, a bullish continuation formation that often signals further upside when the price breaks above the neckline resistance.
Berachain (BERA) 2H Chart/Coinsprobe (Source: Tradingview)
Currently, BERA is trading at $7.05, finding support at the 100-SMA, while completing the handle portion of the pattern. The next resistance lies at the 50-SMA, and a breakout above this level could propel BERA toward its neckline at $8.87. If this breakout occurs with strong volume, it could spark a larger rally towards $12 or higher.
The MACD indicator is currently showing bullish divergence, with the signal line crossing above the MACD line, suggesting a potential upside move. However, a failure to break the neckline could lead to consolidation before a clearer trend emerges.
Final Thoughts
If BERA maintains its current momentum and successfully breaks out from the Cup and Handle pattern, it could lead to a significant rally in the coming days. However, traders should watch for volume confirmation and market conditions before entering positions.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
