Berachain's 15% Plunge: Bullish Momentum Fades After Strong Rally

Berachain (BERA) Falls 15% After a Strong Rally As Bullish Momentum Fades

Berachain (BERA) has experienced a significant pullback, falling nearly 15% in the last 24 hours. Despite this decline, the coin's price remains up nearly 20% over the past seven days. This sharp correction comes after a strong rally between February 18 and February 20, during which BERA reached levels above $8.5.

Technical indicators suggest a loss of bullish momentum and growing bearish pressure. The Relative Strength Index (RSI) has dropped from overbought levels above 86 to its current level of 50.6, indicating a significant loss of bullish momentum. Meanwhile, the Directional Movement Index (DMI) shows growing bearish pressure, with the -DI rising above the +DI, suggesting a potential bearish crossover.

As BERA navigates this correction phase, key support levels are at $6.1, with potential resistance levels at $8.5, $9.1, and $10 if bullish momentum returns. However, if the downtrend continues, BERA could soon test the support at $6.1, and a break below this level could lead to a further decline towards $5.48, reflecting increased selling pressure.

On the other hand, if Berachain can regain its bullish momentum from a few days ago, it could rise above $8.5 again, potentially testing the next resistance levels at $9.1 or even $10. To confirm this bullish scenario, Berachain would need to see renewed buying interest and strong upward momentum. If buyers can defend key support levels and push the price above resistance zones, it could indicate the continuation of the uptrend.