The Berachain token has surged by 35% over the past week, showing strengthened market positions. Amid numerous positive factors, investors are keenly watching the upcoming developments.
Technical Analysis of Berachain
As of press time, Berachain is trading at $7.89, approaching the resistance level of $8.34. Breaking through this level might open the way for further gains, potentially reaching $10. The relative strength index has climbed to 59, nearing overbought territory, yet still leaving room for upside. Immediate support is at $6.53 with a stronger floor at $5.14. Bollinger Bands indicate tightening within a range, signaling potential volatility. Both the 10-day and 20-day moving averages support continued upwards movement, confirming the bullish trend.
Impact of On-chain Data
Optimistic sentiment around Berachain is bolstered by on-chain data. The total value locked in the network has risen to $3.14 billion, nearing its record high of $3.26 billion on March 3. Trading volume on decentralized exchanges increased from $36 million to $132 million between March 23 and March 25. The network's stablecoin market cap has hit a record high of $1.2 billion.
Outlook and Conclusion
The recent rally of the Berachain token follows the launch of the Proof-of-Liquidity system on March 24, expanding governance and emissions capabilities. POL allows users to earn rewards through new vaults distributing BGT emissions. Active incentives hit $355,000, with APR exceeding 200%. With BERA still 45.8% below its all-time high, traders are closely watching if it can break past $8.34. A successful break could push prices higher, but failure might trigger a pullback to $6.53 or $5.14.
Amid the launch of new features and improved network metrics, the Berachain token is experiencing significant growth. However, market participants continue to monitor technical levels, which will be key in determining the next price direction.
