Berachain (BERA) has seen a sharp decline, losing 30% in the past week as market sentiment turns bearish. In the last 24 hours alone, the token dropped another 6%, raising fears of further losses.
Short Sellers Dominate BERA’s Market
The recent price drop has fueled a surge in short positions on Berachain’s futures market. Its funding rate has been negative since opening on February 6 and currently stands at -0.11%. A negative funding rate also suggests more selling pressure, so investors are likely anticipating more falls.
When assets experience heavy spot outflows, it usually signals a strong bearish trend. Traders reducing exposure or taking profits could push BERA even lower in the coming days.
Key Levels: Break Below $6.07 or Rebound?
At press time, Berachain is trading at $6.14, holding just above a key support level at $6.07. If selling pressure continues, the token could break below this level and drop to $5.35. A further decline might even push BERA toward its all-time low of $4.74.
However, if market sentiment becomes positive and demand increases, BERA can bounce back to $7.36. Investors are watching closely for whether bulls regain control or bears hold longer.
