On February 12, it was reported that in 2026, Berachain (BERA) experienced extreme funding rate imbalances in the perpetual contract market, triggering a large-scale short squeeze. The price surged 82% within 24 hours. As of press time, BERA was trading at $0.937, with intraday volatility between $0.5117 and $1.43. After a rapid rise of over 150%, it quickly pulled back. This movement also drove its 7-day gains to 120%, with a total increase of about 70% over 30 days.
Trading volume also expanded significantly. The spot 24-hour trading volume reached $1.05 billion, a 465% increase. Derivatives saw even more dramatic growth, with futures trading volume soaring 632% to $2.94 billion, and open interest increasing 102% to $142.8 million, indicating the market is undergoing concentrated position switching and liquidation rather than just spot chasing.
The core of this rally lies in extreme funding rates. Market monitoring showed that Berachain’s perpetual contract annualized funding rate fluctuated sharply between -5,900% and +3,000%, far beyond normal levels. The perpetual price has been consistently below the spot price, creating a clear basis, which indicates a highly crowded short position. When prices rise, shorts are forced to cover, further pushing prices higher and creating a chain squeeze.
On February 6, BERA unlocked approximately 63.75 million tokens, accounting for 41.7% of the circulating supply. This event, initially seen as bearish, did not trigger a sell-off; instead, the market absorbed it, and the price rebounded rapidly, becoming a trigger for a short squeeze.
Technically, BERA remains in a medium-term downtrend, but recent strong rebound has pushed it back above the 20-day moving average and tested near the 50-day moving average. The RSI has recovered to around 67, indicating improved momentum. Bulls need to hold the $0.87–$0.90 range. If volume breaks through $1.50, the next target could be $1.80–$2.00. Conversely, if it falls below $0.90 and loses the $0.57 support, this rally may only be a short-term rebound driven by market liquidity.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Grayscale says 5 altcoins are at the "buy" price levels
Grayscale Investments emphasizes the potential of Sui (SUI), highlighting its programming model as suitable for organizational deployment. They see current altcoin prices, including SUI, as attractive for accumulation, signaling possible recovery as institutional demand rises.
TapChiBitcoin2h ago
ADA Price Weakens Under Resistance While Large Wallets Accumulate
Key Insights:
Cardano trades below all major moving averages, reinforcing bearish pressure while price struggles to reclaim even short-term resistance levels across multiple timeframes.
Whale wallets holding large ADA balances have steadily accumulated since February, reaching their
CryptoNewsLand9h ago
Dogecoin Holds Near $0.09 as April Pattern Shapes Outlook
Key Insights
Dogecoin maintains stability above the $0.09 support, with buyers defending the level despite consistent selling pressure that limits strong upward momentum in early April trading sessions.
April performance remains historically mixed, with past rallies and declines shaping
CryptoNewsLand9h ago
SHIB Holds Weak Range as Burn Rate Drops and Pressure Builds
Key Insights
SHIB remains within a long-standing descending channel, with price stuck in the lower range and unable to break persistent resistance levels.
The burn rate dropped sharply, removing a short-term support factor and reducing retail-driven momentum seen earlier during increased
CryptoNewsLand9h ago
Bitcoin tends to outperform gold and stocks after global shocks, Mercado Bitcoin finds
According to a study from Mercado Bitcoin, Bitcoin outperformed gold and the S&P 500 in the aftermath of major global crises, displaying stronger returns during economic shocks. Despite its volatility, it has shown resilience and growth during turbulent times.
CoinDesk10h ago
BTC Consolidates At $67,105 As Renewed Whale Accumulation Sparks Bitcoin Breakout Hopes
Bitcoin (BTC) is attracting serious attention from big investors, according to a market observation disclosed today by analyst Ali Martinez. The analyst shared data on X, revealing that whales have accumulated a total of 10,000 BTC over the past 72 hours, a clear signal that high-net-worth investors
BlockChainReporter10h ago
