Berachain (BERA) has experienced a notable downturn of nearly 15% in the past 24 hours, resulting in a market cap of $778 million. Despite this decline, the coin has managed to sustain a growth of almost 20% over the previous week. This sudden pullback follows a robust surge between February 18 and February 20, during which BERA peaked above $8.5.
The Relative Strength Index (RSI) for BERA has retreated from its overbought territory, indicating a waning bullish momentum. Simultaneously, the Directional Movement Index (DMI) depicts an increase in bearish pressure as BERA navigates through this correction phase. Key support lies at $6.1, with potential resistance levels at $8.5, $9.1, and $10 should the bullish momentum resurface.
The current RSI for Berachain stands at 50.6, a significant drop from the recent peak of 86.7 when the price surged above $8.5. Typically fluctuating between 0 and 100, RSI acts as a momentum indicator, with values above 70 suggesting overbought conditions and below 30 indicating oversold territories.
With RSI settling at 50.6, BERA finds itself in a neutral zone, implying a balanced interplay between buying and selling pressures. This phase of equilibrium could signify a period of consolidation following recent gains. A further decline in RSI below 50 might signify a surge in bearish momentum, potentially leading to a price downturn for BERA. Conversely, a stabilization and uptick in RSI could denote renewed buying interest and a potential recovery in Berachain's price.
Moving on to the Directional Movement Index (DMI) chart, the Average Directional Index (ADX) for BERA currently stands at 50.5, having peaked at 60.2 recently. The ADX measures trend strength on a scale of 0 to 100, with values exceeding 25 indicating a robust trend. The surge in ADX reflects a significant uptrend strength, underlining BERA's recent directional movement.
Additionally, the +DI has decreased to 24.4 from 48.4, signaling a weakening bullish momentum, while the -DI has risen to 15.1, indicating a rise in bearish pressure. This shift hints that the preceding bullish trend is losing steam, potentially paving the way for a reversal or deeper correction in BERA’s price.
Berachain’s recent growth spurt led to a surge of 53% between February 18 and February 20, propelling its price above $8.5 after a challenging phase post-airdrop. However, following this rally, BERA entered a corrective phase and now faces a decline of nearly 15% over the past 24 hours.
This pullback is indicative of profit-taking activities and a shift in market sentiment as buyers exhibit hesitancy in driving prices higher. If this downward trend persists, BERA could test the support level at $6.1, with a potential break hinting at further declines towards $5.48 due to escalating selling pressures.
On the flip side, a resurgence of the bullish momentum seen a few days ago could propel Berachain's price above $8.5, potentially encountering resistance levels at $9.1 and $10. For this bullish scenario to materialize, Berachain must witness a resurgence in buying interest and robust upward momentum, defending crucial support levels and surmounting resistance zones to indicate a sustained uptrend.