Berachain (BERA) has seen a remarkable 15% surge in its price within the last 24 hours, pushing its market cap to a substantial $800 million. This price hike comes on the heels of BERA forming a golden cross, indicating a possible shift in trend towards the upside.
Despite this bullish uptick, Berachain's Relative Strength Index (RSI) remains steady in neutral territory, while its Chaikin Money Flow (CMF) is gradually improving but still negative, hinting at cautious investor sentiment. With resistance set at $9.18 and support at $6.18, the future movements of BERA will largely hinge on the sustainability of buying pressure.
Berachain's RSI has hovered in a neutral zone since February 21, currently standing at 57.59, showcasing a marked rise from 35.9 just one day earlier. The RSI, ranging from 0 to 100, gauges the speed and magnitude of price fluctuations.
Typically, an RSI above 70 indicates potential overbought conditions, suggesting a correction may be on the horizon, while a level below 30 implies oversold status and a rebound possibility. Readings between 30 and 70 are considered neutral, reflecting an equilibrium between buying and selling forces.
BERA's RSI at 57.59 suggests a neutral stance but with a notable upward trajectory, signifying strengthening bullish momentum. This uptick could signify a growing interest in buying, potentially fueling further upward price movements.
As the RSI inches closer to the 70 mark, a potential overbought situation may emerge, likely leading to a pullback. Conversely, if it stabilizes around this level, BERA might undergo a consolidation before determining its next course of action.
Even though Berachain's RSI has maintained neutrality for almost a week, the recent upsurge hints at a probable reversal in trends. However, substantial confirmation would necessitate a sustained uptick in buying activity.
Berachain's CMF currently registers at -0.13, a rise from -0.41 two days prior. This highlights a diminishing selling pressure yet still outweighing buying interest.
The Chaikin Money Flow (CMF) determines the accumulation-distribution average over a designated period, typically 20 or 21 days, ranging between -1 and +1. Positive values indicate accumulation and buying pressure, while negative values signal distribution and selling pressure.
BERA's CMF at -0.13 signifies the prevailing negative stance with a fading selling pressure, potentially paving the way for a transition in momentum. If the CMF continues to ascend and breaches zero, a shift towards buying pressure could ensue, hinting at a bullish trajectory.
Despite the negative CMF for six consecutive days, caution prevails in the market sentiment, indicating a sustainable buying volume would be imperative for a definitive market upturn.
Berachain's recent golden cross formation, a bullish trend pattern arising from the short-term moving average surpassing the long-term moving average, further fortifies the positive momentum outlook. With BERA's price soaring by over 15% in the past day, surpassing the $7 mark, this bullish sign hints at a robust buying trend and the dawn of a prolonged uptrend.
This positive trend could potentially propel Berachain towards testing the resistance level at $9.18, representing a significant 25% upside from the current price level. However, a loss in momentum and increased selling pressure might lead BERA to retest the $6.18 support level, a level that exhibited strength in the recent past.
Should this support be challenged and breached, a further decline to $5.48 could be anticipated, marking a potential 25% drop from its current valuation.