Berachain token has crashed following its highly anticipated airdrop last week. BERA token price has plunged by about 70% from its all-time high as investors remain on the sidelines. So, will the coin rebound and retest its all-time high of $15.45?
Arthur Hayes Explains The BERA Token Price Crash
In an X post, Arthur Hayes, a popular crypto investor and founder of BitMex, blasted Berachain founders for the crash. He noted that the coin would have done better if the developers had worked with market makers and exchange partners to set the ideal BERA token price. He said:
“Work with your market makers and exchange partners to open the market at lower prices. This chart is ugly not cause the project is dogshit but bc the price is too damn high. Bring your users on a wealth generation journey with you.”
BERA token price has mirrored that of other recently launched airdrops. Hamster Kombat price has crashed by over 80% from its all-time high. Other Telegram tokens like Catizen, DOGS, and Notcoin have also plunged after their airdrops.
Similarly, other utility tokens like Grass, Wormhole, and ZkSync tokens have all crashed since their airdrops. Most of these tokens also lagged behind other tokens even as most altcoins rebounded in November.
A likely reason for the BERA token price is the future dilution since only 107.48 million tokens are in circulation against a total supply of 500 million.
Further, and most importantly, is the fact that the Berachain airdrop happened when most altcoins were in a bear market.
Will the Berachain Price Rebound to ATH?
Historical data from some of the most recent airdrops show that BERA token price faces a major challenge going back to a record high. All the tokens mentioned above are yet to rebound and remain over 50% below their all-time high.
It is also unclear whether Berachain’s strong ecosystem will help to support its growth. DeFi Llama shows that Berachain has a total value locked of over $1.92 billion, making it the 9th biggest chain in crypto. It is bigger than popular chains like Sui, Avalanche, Aptos, and Polygon.
BERA Price Technical Analysis
Berachain token is a fairly new coin, meaning that its chart is not ideal for long-term technical analysis. On the 30-minute chart, however, we see that the BERA token price has formed a rising broadening wedge pattern, which is usually a bearish one.
The token has now moved to the seventh wave of this wedge pattern. In most cases, an asset will typically rebound and move above the wedge and then crash. Therefore, the BERA price may rebound to $10 and then resume the downward trajectory.
Frequently Asked Questions (FAQs)
Berachain token is unlikely to rebound and retest its all-time high in the near term. Technicals suggest that the coin will rebound to $10 and then resume the downward trend.
Yes, Berachain has emerged as one of the biggest players in the blockchain industry with over $1 billion in total value locked.
Berachain price crashed after the airdrop because of its high initial price, the ongoing crypto crash, and the fact that trader are remaining in the sidelines.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/can-berachains-bera-token-price-revisit-ath-after-crashing-70-in-just-5-days/
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