Surge in Liquidity Inflows into Berachain

There has been a surge in liquidity inflows into Berachain over the past 24 hours, surpassing other chains. The market remains sluggish, but the pressure hints at an upside opportunity for a major boom.

Price Decline Amid Liquidity Inflows

In the past 24 hours, Berachain (BERA) has declined by 4.58% as market sentiment turned bearish. This continues its downward trend from the past week, during which the asset dropped by 10.65%.

This price decline is occurring despite massive liquidity inflows into the chain. Other key market metrics indicate intense selling pressure from market participants.

Liquidity Inflows Fail to Trigger a Price Surge

According to Artemis, massive liquidity inflows into Berachain have been recorded over the past 24 hours. During this period, $112.8 million worth of BERA was purchased, placing it ahead of Base, Solana (SOL), and Sei Network (SEI).

Typically, a large liquidity inflow results in a major price surge. However, the opposite is happening with BERA, as the asset continues to struggle and investors remain in a drawdown.

Total Value Locked (TVL) analysis shows that investors are beginning to sell their locked or deposited BERA across protocols on Berachain. This trend began on March 6, when TVL was at $3.495 billion; it has now dropped to $3.187 billion, meaning $308 million worth of BERA has entered the market, adding to downward pressure.

Growing Selling Pressure in Markets

The selling pressure is not just limited to DeFi protocols; traders are also selling in both spot and futures markets.

Coinglass exchange netflow data reveals that after five consecutive days of buying from spot traders, this group has started selling BERA, with $81,570 worth of the asset sold—this amount is likely to increase as other market segments follow.

Derivative traders are also increasing their selling activities. According to AMBCrypto’s analysis, the Funding Rate, which shows whether long or short traders are paying premiums, indicates that short traders dominate the market with a reading of -0.0834.

This suggests there are more short contracts than longs, indicating bearish sentiment that typically weighs on price action.

Hope for a Price Rebound?

While the market remains broadly bearish, there are signs of potential recovery. A close examination of BERA’s 4-hour chart reveals that the asset bounced off a key support level at $5.538, forming three consecutive bullish candles.

If bearish momentum slows and this support level acts as a catalyst, BERA could potentially reach two target levels: first at $7.20 (a 30% increase) and then at $8.89 (a 60% increase). However, this scenario depends on the emergence of bullish trends and a retreat of bears. If that occurs, BERA could see a major price surge reaching these targets.