BERA Drops 4.58% Despite $112.8M Liquidity Inflow

In the past 24 hours, Berachain [BERA] has experienced a significant inflow of liquidity, totaling $112.8 million. This substantial investment places Berachain ahead of other prominent chains such as Base, Solana [SOL], and Sei Network [SEI]. Despite this influx, the market sentiment for BERA remains bearish, with the asset declining by 4.58% over the same period. This downward trend is part of a broader decline that has seen BERA drop by 10.65% over the past week.

Typically, a large liquidity inflow is expected to trigger a major price surge. However, BERA has not followed this pattern, continuing to struggle as investors remain in a drawdown. One possible explanation for this discrepancy is the intense selling pressure from market participants. A study of Total Value Locked (TVL) shows that investors have begun to sell their locked or deposited BERA across various protocols on Berachain. This trend started on March 6, when TVL stood at $3.495 billion. As of the latest data, TVL has dropped to $3.187 billion, indicating that $308 million worth of BERA has flooded the market, adding to the downward pressure.

The selling pressure is not confined to decentralized finance (DeFi) protocols; traders are also selling in both the spot and derivatives markets. Coinglass exchange netflow data reveals that after five consecutive days of buying from spot traders, this cohort has begun selling BERA. As of the latest data, $81,570 worth of the asset has been sold, a number likely to increase as other market segments follow suit. Derivative traders are also increasing their activity, with the Funding Rate indicating that short traders are dominating, as shown by a reading of -0.0834. This suggests that there are more short contracts in the market than longs, and traders holding these short contracts are paying a periodic fee to maintain their positions. Such events indicate bearish sentiment, which tends to weigh on price action.

Despite the current bearish market sentiment, there are signs of potential recovery for BERA. A closer look at BERA’s 4-hour chart shows that the asset bounced perfectly from a key support level at $5.538, forming three consecutive bullish candles. If bearish momentum slows and this support