Berachain (BERA) falls 50% in one month as warning indicators continue to decline

Berachain (BERA) is under significant pressure, down 50% over the past 7 days as technical indicators continue to issue warnings. Momentum still leans towards the downside, with the RSI remaining low in the oversold territory and DMI indicating that sellers remain dominant.

The EMA structure also indicates the risk of further decline, increasing the likelihood that BERA could break the $3.8 level and create a new all-time low. However, if the bulls step in, the price could test key resistance levels at $4.44 and $4.78, opening up the opportunity for a recovery.

The RSI of BERA is struggling below 30

The Relative Strength Index (RSI) of Berachain is currently at 24.19 and has remained below the oversold threshold of 30 since April 7. The ongoing weakness of the RSI indicates sustained downward pressure and the token is struggling to regain upward momentum.

Note that the RSI of BERA has been below the neutral level of 50 since April 3rd, indicating a general downward trend in recent days.

! BERA RSI of BERA | Source: TradingViewRSI is a motivational indicator that measures the speed and change of price movements on a scale from 0 to 100. Indicators above 70 usually indicate overbought conditions, while values below 30 indicate the asset may be oversold and ready to recover.

With BERA's RSI at a deep oversold level of 24.19, a short-term rebound could occur if buyers enter. However, unless it breaks out of level 50, the broader downtrend remains the same.

The DMI of Berachain shows that sellers are still in control

The DMI chart ( Directional Movement Index ) of Berachain shows that the ADX has risen to 38.52 – significantly higher from 27.56 just two days ago. The strong increase in ADX indicates that the strength of the current trend – in this case, the downtrend – is strengthening.

An ADX value above 25 usually indicates a strong trend, and with it approaching 40, the market momentum seems to be growing.

CMF of BERA | Source: TradingViewDMI includes two directional indicators: +DI tracks upward movement and -DI tracks downward movement.

+DI of BERA has increased from 8.94 to 14.44, indicating a slight increase in buying pressure, although it has stabilized over the past few hours. Meanwhile, -DI has decreased from 46.4 to 36.53, meaning the dominance of the selling side is easing slightly.

Although the narrowing gap between +DI and -DI signals a potential change, the fact that -DI remains clearly ahead and ADX continues to rise indicates that the bearish trend is still dominant even though the bulls are starting to push back.

BERA will create a new all-time low price in the near future?

The current price chart of Berachain demonstrates a bearish EMA structure, with short-term (MA) moving averages below the long-term MAs — a classic signal that the downward momentum may continue.

If this correction continues, BERA will fall below $3.8, creating a new all-time low and further shaking investor confidence in the short term.

Price Analysis of BERA | Source: TradingViewHowever, if the trend reverses and buyers participate strongly, the price of BERA may start to rise towards important resistance levels. The first major barrier is at $4.44, and if this level is surpassed, the path towards $4.78 may be opened.

If the bullish momentum returns strongly, Berachain could even recover to retest $5.43, signaling a potential shift back to an uptrend.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions.

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Dinh Dinh

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