Berachain price surges 82% due to funding rate anomaly

Berachain price exploded higher after an extreme funding imbalance in perpetual markets triggered a wave of short liquidations.

BERA was trading at $0.937 at press time, up 82% in the past 24 hours. The token moved between $0.5117 and $1.43 during that period and had earlier surged more than 150% before pulling back. The rally leaves BERA up 120% over the past seven days and 70% over the last month.

Spot activity expanded sharply. 24-hour trading volume reached $1.05 billion, a 465% increase. Derivatives markets were even more aggressive.

According to CoinGlass data, futures volume jumped 632% to $2.94 billion, while open interest climbed 102% to $142.80 million, indicating heavy repositioning rather than simple spot buying.

Extreme funding rates trigger squeeze

The move was driven by an unusual discrepancy in Berachain (BERA) perpetual futures. Traders reported funding rates ranging from -5,900% to +3,000% on an annualized basis, far outside typical norms. Perpetual contracts were also trading materially below spot, creating a wide basis.

Funding rates act as a balancing tool between longs and shorts. When rates turn deeply negative, shorts pay longs. That structure often reflects crowded bearish positioning. If the price begins to rise, shorts are forced to buy back contracts, which accelerates the move.

That is what appears to have happened.

The anomaly intensified after the Feb. 6 token unlock of 63.75 million BERA, roughly 41.7% of the circulating supply. Many traders had positioned for heavy post-unlock selling. Instead, the market absorbed the supply without a collapse. As prices began to climb, short positions were squeezed.

BERA spiked 83% to around $1.4 before dropping 35% within 15 minutes. Binance alone reportedly saw close to $1 billion in perpetual volume during the swing. In a token with a market cap near $190–210 million, concentrated whale activity can easily trigger liquidation cascades.

Sentiment was also supported by the project’s strategic pivot toward a more revenue-focused approach and relief after earlier overhangs, including a refund clause expiry and the unlock event itself.

Berachain price technical analysis

Structurally, BERA has been in a clear downtrend since listing, printing lower highs and lower lows while trading below the 20-day and 50-day moving averages. The recent 80% surge is the first meaningful impulsive leg against that structure.

Price has now reclaimed the 20-day moving average and is attempting to hold above the 50-day average near $0.57, which had acted as dynamic resistance for weeks. However, the 20-day remains below the 50-day. No bullish crossover has formed yet, so the broader trend has not officially flipped.

Bollinger Bands had been tightly compressed before the move. They have now expanded sharply, with price breaking above the upper band and printing a wick above $1.50. Such expansion can signal either continuation or a blow-off top.

Momentum has improved. The relative strength index sits near 67 after spending months below 50. A sustained move above 60 often marks an early shift in regime, though it is not yet in extreme overbought territory.

For bulls, holding above the $0.87–$0.90 zone is critical. A strong daily close above $1.50 would confirm a higher high and open the door toward $1.80–$2.00.

For bears, a breakdown below $0.90 followed by a close under the $0.57 50-day average would suggest the rally was primarily a funding-driven squeeze rather than the start of a durable reversal.