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.
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.
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.
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.