Berachain faces liquidity crunch as outflows grow: what’s next for BERA price?

Berachain (BERA) dominated crypto trends with its impressive performance earlier this year. However, the narrative has changed, and the altcoin is now struggling with significant downward pressure. After hitting the $7.624 high, BERA has lost over 50% to hover near $3.60 at press time. While profit-booking contributed to the notable slide, increasing liquidity exodus has weighed on BERA’s momentum. With the significant shift in sentiment and magnifying selling pressure, the question remains: what is next for BERA and its price actions? Berachain’s quick turnaround Berachain thrived three months ago, leading recoveries in the altcoin space. The platform recorded a staggering 685 million in liquidity inflows, eclipsing most of its rivals. Amplified interest in BERA’s ecosystem and speculations about its future price potential catalyzed the bullish tendencies. Also, optimistic ecosystem developments, including the launch of the proof-of-liquidity (PoL) system fueled trader and investor excitement. Fast forward to today, the narrative is much different. The liquidity that kept Berachain afloat is now drying up. Traders have increasingly exited their positions, leading to swift reversals in price while dampening sentiments. Over $43 million offloaded in a week Numbers don’t lie. Traders offloaded BERA tokens worth $40 million in the past week ( Artemis data ). The trend persisted as they sold $3.4 million worth of assets in the past 24 hours, confirming magnified selling momentum. The massive outflows have sparked worries among holders and enthusiasts. This is different from profit-taking, it highlights funds exiting the BERA platform entirely. Such trends can severely damage the altcoin’s near-term recovery potential. Notably, dried liquidity translates to fewer buyers, higher volatility, and thinner order books. These narratives challenge BERA’s rebound possibilities in the short term. Even new buyers might not be enough to rescue Berachain from its struggles. The project requires massive inflows and revived investor sentiments to secure grounds before contemplating new surges. Notably, the altcoin experiences a notable shift in investor sentiments as even long-term participants start to reduce their holdings. Dwindled interest among loyal holders confirms a lack of conviction in BERA’s near-term bounce-backs. The altcoin may need massive catalysts to break out. BERA price outlook The alt trades at $3.60, down over 5% within the past 24 hours. Chart by Coinmarketcap It remained range-bound in the previous week and down 47% on the monthly chart. The declining trading volume signals more pain for BERA amid dwindled investor interest. Thus, the alt remains poised for extended declines unless liquidity returns and large-scale holders stop dumping. For now, Berachain will likely consolidate to rebuild momentum before initiating a solid recovery. Meanwhile, crypto is known for its unpredictability. Massive fundamental developments, including protocol upgrades, strategic collaborations, and broad-based rallies, could stabilize BERA and revive investor enthusiasm. The post Berachain faces liquidity crunch as outflows grow: what’s next for BERA price? appeared first on Invezz

Source: Invezz