Berachain Surges 20% in 24 Hours Driven by Whale Activity and Governance Proposals

Berachain, a prominent cryptocurrency, experienced a significant surge of 20% within a 24-hour period. This substantial gain was driven by a combination of factors, including an increase in transaction count and heightened activity from large investors, commonly referred to as whales. The momentum behind Berachain's price increase was largely on-chain, with technical indicators also showing a bullish outlook. Key governance proposals, such as allocating 33% of block rewards to stakers and implementing protocol-level buybacks, further bolstered investor confidence. Additionally, a 7-day unbounding period was introduced to discourage short-term speculation, contributing to the overall positive sentiment.

Berachain's price action broke above its recent lower high on the daily chart, indicating a potential reversal. The altcoin demonstrated massive volume, which was identified as a key driver of this surge. Analysts suggested that if the current breakout above $2 holds, Berachain could potentially surge past $3. However, before reaching $3, the $2.5 level needed to be reclaimed. If the momentum is sustained, Berachain could reclaim $3.5, setting the stage for a potential move toward $4.5, a level last visited in early April and mid-May. Conversely, failure to maintain the current price level, accompanied by significant seller volume or weak buying, could lead to a reversal.

The surge in Berachain's price was also corroborated by a 15.79% increase in the number of transactions within the last 24 hours, totaling 1.173 million. This spike in transactions typically indicates higher user participation. Additionally, the total and new addresses, as well as contracts verified, showed an increase, although these changes did not match the surge in transactions. Unique addresses hit an all-time high of 5.5 million after maintaining a steady trend since the start of February. The daily gain of 1,555 addresses was substantial, as these were primarily tied to nodes that facilitate communication within the chain. The 1% rise in total gas used further confirmed the increased activity on the chain, as transactions become more expensive with higher blockchain usage. This affirmed that Berachain was handling more transactions compared to previous months.

Data from CryptoQuant indicated that both futures and spot whales were eyeing a continued rise in Berachain's price. Despite the continuous decline in price since February, whales were actively buying Berachain. Apart from orders dominated by whales, Berachain was also seeing buyer dominance, as indicated by the spot CVD. However, the CVD for derivatives remained neutral, suggesting that Berachain was at an indecisive point for these markets. While there were several factors driving this surge, for Berachain's price to maintain its trajectory, the broader crypto market sentiment needed to align favorably. The performance of the top 200 cryptocurrencies by market cap, as assessed by CoinMarketCap, showed that memecoins were leading the charge. Leading the meme sector was SPX6900, which surged by 21%, closely followed by Berachain, which had a 20% rise at the time of writing.