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
Crypto market rebounds this morning, BTC touches $72,000, funding rates return to neutral
The crypto market rebounded on March 13, with Bitcoin recovering to 72,000 USD and Ethereum recovering to 2148 USD. Funding rates on major exchanges returned to neutral levels, indicating that bearish sentiment has eased. The funding rate is a mechanism that adjusts the relationship between contract prices and asset prices.
GateNews15m ago
Cardano Price Near Key Pivot as Macro Liquidity Signals Shift
Key Insights
Analyst Dan Gambardello links Cardano’s monthly RSI reset and macro liquidity cycles to conditions that previously preceded ADA’s explosive 2020–2021 rally.
ADA trades near $0.26 while the $0.288 moving average forms resistance, and the $0.24 to $0.25 zone continues acting as
CryptoFrontNews31m ago
Solana Tests $90 Resistance as Fibonacci Confluence Signals Key Turning Point
Key Insights
Solana price is nearing a major resistance near $90 where Fibonacci retracement and value area levels align, creating a decisive technical barrier.
Market structure shows the rally forming part of an ABC corrective pattern, keeping the broader consolidation intact while price tr
CryptoFrontNews36m ago
Easing oil price surge! US Treasury Secretary: Open to purchasing Russian offshore oil, Bitcoin breaks through 72,000
The United States temporarily opened purchases of stranded Russian oil at sea to ease soaring oil prices, causing oil prices to decline. Bitcoin surged past $72,000. Meanwhile, gold ETFs experienced capital outflows, indicating increased institutional participation in the Bitcoin market and improved market liquidity.
CryptoCity36m ago
VanEck: Bitcoin Miners Sitting on a "Gold Mine," AI Demand Market Not Yet Priced In
Bitcoin mining has advantages in transitioning toward artificial intelligence (AI) because it already possesses mature electrical infrastructure and resources that can flexibly respond to grid demands. The market has not fully reflected this potential, resulting in a valuation gap. Major mining companies are adjusting their strategies to pursue AI business to counteract the impact of declining hash rates.
MarketWhisper1h ago
CryptoQuant Reveals Ethereum's "Adoption Paradox": Users Double While Funds Flee, ETH Could Plunge to $1500 by Year-End
Ethereum's activity reaches an all-time high, but price falls sharply due to fund outflows, with realized value turning negative. If the bear market continues, ETH is predicted to potentially drop to $1,500. Analysis indicates that network usage growth cannot support asset performance, and Layer 2 scaling poses pressure on ETH. The market shows significant divergence over Ethereum's future value.
動區BlockTempo1h ago
