BERA Price Decline: Why Liquidity Inflows Aren’t Helping the Market

BERA Price Decline- A Potential Price Turnaround?

BERA Price Decline– In the past 24 hours, Berachain (BERA) has seen a decline of 4.58%, continuing a negative trend that began last week, during which the token fell by 10.65%. This price drop comes despite substantial liquidity inflows into the chain, which typically would drive prices higher. However, the asset is facing intense selling pressure, indicating a bearish market sentiment.

Artemis data shows that Berachain (BERA) has experienced significant liquidity inflows in the past day. Normally, large liquidity inflows correlate with price increases, but in BERA’s case, the opposite is happening. Instead of a price surge, the asset struggles to maintain positive momentum, leaving investors in a period of drawdown.

A deeper analysis of the Total Value Locked (TVL) metric shows a concerning trend. TVL, which was at $3.495 billion on March 6, has now decreased to $3.187 billion, a drop of $308 million. This indicates that investors are beginning to sell their locked or deposited BERA tokens across protocols on Berachain, adding to the downward pressure on the price.

Increased Selling Pressure Across Markets

The selling pressure isn’t confined to decentralized finance (DeFi) protocols. Traders are also selling in both the spot and futures markets. Coinglass exchange netflow data reveals that after five consecutive days of buying, spot traders have begun selling Berachain (BERA), with $81,570 worth of the asset being sold so far.

AMBCrypto’s analysis of the Funding Rate suggests that short traders are dominating the market, as indicated by the negative rate of -0.0834. This shows that there are likely more short contracts than long ones, and traders holding short positions are paying a periodic fee to maintain their trades. This suggests that bearish sentiment continues to weigh on BERA’s price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.