Berachain (BERA) risks 45% drop if key support at $0.706 fails

Published: 2026-02-14 05:12:06 |

Berachain (BERA) has declined ~18% in 24 hours to about $0.655 after a 315% prior surge, with trading volume down ~75% to $331 million. Daily technicals show BERA losing the local support at $0.706; failure to reclaim this level could lead to a further ~45% decline toward ~$0.35. A daily close above $0.777 would be needed to signal a reversal. The ADX reads 33.65, indicating a strong directional trend. On-chain metrics from DeFiLlama report declines in TVL, chain revenue and DEX volume over the past three days, reflecting weaker user activity. Derivatives data from Coinglass show mixed sentiment: $644k net outflow on spot (possible accumulation), ~ $3.71M of short-leveraged positions clustered near $0.708 (resistance), and ~$641k of long-leveraged positions near $0.64 (support). Overall, bearish positions dominate. Key takeaways for traders: watch $0.706 as the critical support — a confirmed breakdown targets $0.35; $0.777 daily close is required to flip momentum bullish; monitor volume, TVL and derivatives open interest for confirmation.

Bearish

The article presents multiple converging bearish signals for BERA. Price has already dropped 18% in 24 hours and lost the $0.706 support; ADX >25 (33.65) confirms strong directional momentum. Low trading volume (−75%) and falling on-chain metrics—TVL, chain revenue and DEX volume—indicate weakening user activity and lower market confidence, which historically precedes extended declines. Derivatives positioning shows heavy short-leveraged exposure concentrated near $0.708, increasing downside pressure if longs are squeezed out. While spot outflows (~$644k) could suggest accumulation by some, the net picture favors further selling. Short-term impact: elevated downside risk with a clear target near $0.35 if $0.706 fails; expect higher volatility, amplified by concentrated leveraged positions. Longer-term impact: sustained weakness in TVL and usage could delay recovery and keep sentiment negative until on-chain activity and volume recover. Traders should wait for confirmation — reclaim of $0.706 and a daily close above $0.777 would be needed to shift bias bullish; otherwise risk management (tight stops, reduced leverage) is advised.