Berachain [BERA] has been on a downward trend for months

After peaking at $7.624, the altcoin spiraled downward and recently hovered near $3.7. Analysis shows that the drop has been influenced by changes in liquidity flow

output: Berachain [BERA] has been on a downward trend for months. After peaking at $7.624, the altcoin spiraled downward and recently hovered near $3.7.

Analysis shows that the drop has been influenced by changes in liquidity flow as market traders sell off their holdings. This isn’t just profit-taking — it’s more than that, AMBCrypto explains.

Liquidity outflow dampens rally possibility

BERA’s current price action reflects a significant outflow of liquidity from the chain, according to AMBCrypto.

Three months ago, BERA recorded the most Liquidity Inflow in the market, reaching $685 million. Since then, sentiment has shifted, and traders have consistently sold their positions.

Source: Artemis

Moreover, just in the last week, traders offloaded $40 million worth of BERA. On top of that, $3.4 million more was sold in the past 24 hours alone — compounding sell pressure and killing short-term rally hopes.

This constant outflow has caused BERA to drop notably, with potential for further decline if the selling trend continues.

Why is liquidity outflow high?

AMBCrypto linked this consistent outflow from BERA to declining interest among market investors, as data revealed.

According to Artemis, which tracks active users or investors in BERA, the number of Daily Active Addresses has plunged significantly.

Source: Artemis

The drop has intensified since the start of April. After reaching a high of 1.2 million investors, only 72,500 BERA addresses currently remain active.

This extreme plunge reflects a lack of confidence in the altcoin’s long-term viability, which is also evident in BERA’s market capitalization.

Source: Artemis

BERA’s market cap dropped 48.4% since the start of April — from $776.7 million to $401.4 million. When market capitalization drops like this, it implies that there’s more selling than buying.

What are Futures traders betting on?

A further drop in BERA’s price

The Taker Buy-Sell Ratio showed that bears were gradually taking over. At press time, this ratio had dropped below 1, fell to 0.9505 and continued trending lower.

When this metric declines as it has here, it simply indicates that sellers are dominating the market.

If it continues to fall, BERA’s current price of $3.7 may not be the bottom, and further decline could be ahead.