Key Takeaways
Apart from the structure shift, Berachain’s price gains are also driven by increased transaction count and whale activity. Still, continued gains rely on the broader crypto market sentiment.
Assessing the performance of the top 200 cryptocurrencies by market cap as per CoinMarketCap showed memecoins were in the lead.
Leading the meme sector was SPX6900 [SPX], which surged by 21% but was closely followed by BERA, which had a 20% rise at the time of writing.
Berachain’s [BERA] momentum was more of on-chain dominated as compared to the technical outlook, which was also bullish.
Apart from the governance proposal of 33% block rewards to stakers, there were protocol-level buybacks and 7-day unbounding period to deter short-term speculation.
Can BERA reach $3?
BERA price action broke above its recent lower high on the daily chart, signaling potential reversal. The details showed that the altcoin had massive volume, which could be one of the key drivers of this surge.
Looking at the chart with an analysis point of view, BERA could surge past $3 if the current breakout above $2 holds. However, before hitting $3, the $2.5 level needed to be reclaimed.
Source: CoinMarketCap
In case the momentum is held, BERA could reclaim $3.5 which would define the path toward $4.5. The $4.5 level was last visited in early April and mid-May.
On the other hand, failure to stay above accompanied by huge seller volume or even weak buying could set the price for a reversal.
Worth exploration are the other factors driving this surge. Apart from governance, what is chain saying?
What’s driving the surge?
The number of transactions in the last 24 hours surged by 15.79% which resulted in 1.173 million. This first corroborated this surge as a spike in transactions usually represents more participation from users.
Additionally, the total and new addresses rose as well as contracts verified. However, these change did not match that of transactions.
Moreover, unique addresses hit an ATH of 5.5 Million after keeping a steady trend since the start of February.
The daily gain was limited to only 1555 addresses, which was substantial as these mostly tied to nodes that enable communication in the chain.
Source: BeraScan
The 1% rise in total gas used confirmed the increased activities on the chain, since transactions become more expensive upon blockchain usage.
This affirmed that BERA was handling more transactions compared to previous months.
Additionally, CryptoQuant’s data showed that Futures and Spot whales were all eyeing a continued rise. The charts showed that whales were buying BERA despite price declining continuously since February.
Source: CryptoQuant
Apart from orders dominated by the whales, BERA was also seeing buyer dominance, as the spot CVD denoted.
However, the CVD for derivatives stayed neutral suggesting, BERA was at an indecisive point for these markets.
That said, there were more factors that were driving this surge, but for price to maintain this trajectory, the broader crypto market needed to be also in line.
