BERA Price Prediction: Berachain’s Native Token Struggles to Gain Traction Amid Weak Market Conditions

Berachain's native token, BERA, has had an underwhelming start, struggling to gain traction amid weak market conditions. The token's launch followed the debut of Berachain's Layer 1 proof-of-liquidity blockchain on Thursday.

The launch of Berachain’s (CRYPTO: BERA) Layer 1 proof-of-liquidity blockchain on Thursday was accompanied by the debut of its native token, BERA.

Following the token launch, an airdrop of 55.75 million BERA was conducted. At the token’s peak, it was valued at over $1 billion. However, the price quickly encountered resistance and began to decline sharply.

The Relative Strength Index (RSI) indicator suggests that bearish momentum is currently in control. The indicator is positioned below the neutral 50.0 mark, indicating that selling pressure outweighs buying interest. This limits any immediate recovery potential.

Traders are remaining cautious, which is evident in BERA’s sluggish performance during the early trading phase. Without strong bullish momentum, short-term price growth appears uncertain.

If RSI remains below the neutral level, BERA could continue to face resistance in establishing a meaningful uptrend. Without a shift in market sentiment, the token may remain under pressure, extending its current consolidation.

The broader market outlook for BERA is reflected in the Chaikin Money Flow (CMF) indicator, which is currently below the zero line. This signals weak capital inflows into the token, suggesting that investors are hesitant to commit funds.

Skepticism regarding newly launched projects often results in cautious trading behavior, as seen with BERA. If investor confidence does not improve, the token may struggle to attract significant inflows.

Without an increase in buying pressure, the price could remain subdued, further limiting its ability to recover from the initial decline.

Price Action: BERA is currently trading at $7.61, having consolidated between $8.72 and $7.07 over the past 12 hours.

The minimal price movement within this range highlights the impact of bearish sentiment and weak investor interest. Until a breakout occurs, price action is likely to remain largely contained.

The altcoin has already experienced a sharp decline of 50% from its intra-day low to its current all-time low and is now down by 45% from its peak.

Such a steep drop on the first day raises concerns about its immediate outlook. If selling pressure continues, BERA could extend its losses, potentially testing the $5.00 support level.

However, a potential turnaround remains possible if the altcoin can reclaim $8.72 as a support level. A successful flip of this resistance could spark renewed interest, leading to a rally toward $9.85.

This move would invalidate the bearish outlook and set the stage for further recovery.