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
Kalshi Traders Forecast XRP to Hit $1.60 in April
Kalshi traders predict XRP will reach $1.60 in April amid rising demand and significant ETF inflows. With a bullish technical outlook and upcoming regulatory votes, XRP's market dynamics show potential for further gains, despite risks of declining support levels if outcomes are unfavorable.
CryptoFrontier14m ago
Solana Adoption Surges to 167M While Usage and Price Diverge
Key Insights
Solana reached 167 million holders, signaling strong adoption growth even as active addresses declined, showing a widening gap between ownership and usage trends.
Institutional interest increased as DeFi Development Corp accumulated over 2.22 million SOL, reinforcing long-term c
CryptoNewsLand2h ago
Shiba Inu Forecast: Range-bound Moves Shift After Bullish Golden Cross
SHIB consolidates near $0.0000058 amid declining volume and reduced market participation.
Bullish golden cross signals short-term momentum shift despite ongoing range-bound price action.
Key support at $0.00000562 holds focus, with breakout targets near $0.00000625 and higher.
Shiba
CryptoNewsLand5h ago
Pudgy Penguins Price Analysis: $0.008 Could Trigger the Next Big Move
PENGU shows steady growth, signaling accumulation rather than short-term speculation.
Buyers dominate spot and futures markets, strengthening current bullish momentum.
$0.008 resistance remains key, with breakout or consolidation likely next.
Pudgy Penguins — PENGU, has started showing a
CryptoNewsLand6h ago
The Strait of Hormuz is fully reopened, and Bitcoin surged to 78K. MicroStrategy (MSTR) jumped 12%.
Iran announces that the Strait of Hormuz is fully open; oil prices fall sharply as supply concerns ease, and U.S. stock indexes hit record highs. Bitcoin once surged to $78,333 and lifted MicroStrategy’s stock price by 12% in a big jump. Market-wide sentiment improves, and cryptocurrencies also show signs of capital inflows.
ChainNewsAbmedia11h ago
BUY ALTCOINS NOW” — Altseason Index Signals Massive Pump Ahead, But Are These 4 Coins Worth the Risk?
The Altseason Index shows a compression pattern that often precedes strong market expansion.
XRP reflects stability, while Aptos and Sui show higher growth but increased volatility.
Pi remains speculative due to unclear liquidity and limited exchange presence.
The altcoin market is
CryptoNewsLand12h ago
