Berachain’s native token, BERA, has had an underwhelming start, struggling to gain traction amid weak market conditions. The token’s launch followed the debut of Berachain’s Layer 1 proof-of-liquidity blockchain on Thursday. 

Along with it came an airdrop of 55.75 million BERA, which peaked at a valuation of $1 billion before experiencing a sharp decline.  

Berachain Is Losing Traction

The Relative Strength Index (RSI indicates that bearish momentum is currently in control, with the indicator struggling below the neutral 50.0 mark. This suggests that selling pressure outweighs buying interest, limiting any immediate recovery potential. Traders remain cautious, further contributing to BERA’s sluggish performance in the early trading phase.  

Given the lack of strong bullish momentum, short-term price growth appears uncertain. If RSI remains below the neutral level, BERA could continue to face resistance in establishing a meaningful uptrend. Without a shift in market sentiment, the token may remain under pressure, extending its current consolidation phase.  

The broader market outlook for BERA remains uncertain, as reflected in the Chaikin Money Flow (CMF) indicator, which is currently below the zero line. This signals weak capital inflows into the token, suggesting investors are hesitant to commit funds. The uncertainty surrounding Berachain’s long-term viability may be a contributing factor.  

Skepticism regarding newly launched projects often results in cautious trading behavior, as seen with BERA. If investor confidence does not improve, the token may struggle to attract significant inflows. Without an increase in buying pressure, the price could remain subdued, further limiting its ability to recover from the initial decline.  

BERA Price Prediction: Breaking Out

BERA is currently trading at $7.61, consolidating between $8.72 and $7.07 over the past 12 hours. The limited movement within this range highlights the impact of bearish sentiment and weak investor interest. Until a breakout occurs, price action is likely to remain subdued.  

The altcoin has already experienced a sharp 50% decline during its intra-day low and its current all-time low and is now down by 45% from its peak. Such a steep drop on the first day raises concerns about its immediate outlook. If selling pressure continues, BERA could extend its losses, potentially testing the $5.00 support level.  

However, a potential turnaround remains possible if the altcoin can reclaim $8.72 as a support level. A successful flip of this resistance could spark renewed interest, leading to a rally toward $9.85. This move would invalidate the bearish outlook and set the stage for further recovery.

Bitcoin price is consolidating above the $95,500 support zone. BTC is showing a few positive signs and might attempt a recovery if it clears $100,000.

• Bitcoin started a fresh decline below the $100,000 level.
• The price is trading below $99,000 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line forming with resistance at $98,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it clears the $100,000 zone.

Bitcoin Price Holds Support

Bitcoin price failed to continue higher above the $102,500 zone. It started another decline below the $99,000 zone. BTC gained bearish momentum for a move below the $98,500 and $96,500 levels.

A low was formed at $95,700 and the price recently started a consolidation phase. There was a minor increase above the $97,000 level. The price surpassed the 23.6% Fib retracement level of the downward move from the $102,500 swing high to the $95,700 low.

Bitcoin price is now trading below $98,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $98,000 level. There is also a connecting bearish trend line forming with resistance at $98,000 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $99,100 level or the 50% Fib retracement level of the downward move from the $102,500 swing high to the $95,700 low. The next key resistance could be $100,000. A close above the $100,000 resistance might send the price further higher.

In the stated case, the price could rise and test the $101,200 resistance level. Any more gains might send the price toward the $102,500 level.

Another Decline In BTC?

If Bitcoin fails to rise above the $98,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $96,200 level. The first major support is near the $95,500 level.

The next support is now near the $93,200 zone. Any more losses might send the price toward the $92,200 support in the near term. The main support sits at $90,900.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.

Major Support Levels – $96,200, followed by $95,500.

Major Resistance Levels – $98,000 and $100,000.

Crypto analysts have observed a significant shift in investor sentiment over the past several weeks, suggesting a more knowledgeable investor base, even among the retail holders.

Previously dominated by speculative meme coins, the market is now increasingly focused on high-tech altcoin projects with real-world utility and novel blockchain solutions.

Investor Interest Shifts to RWA and DeFi

Web3 information platform Kaito AI and insights from crypto analysts suggest that investor mindshare is increasingly shifting toward Real-World Assets (RWAs), decentralized finance (DeFi), and advanced blockchain protocols.

According to Kaito AI, RWA mindshare has surged after reaching a 12-month low in January. This resurgence signals renewed interest in tokenizing real-world financial assets, which has attracted institutional players.

Similarly, DeFi has regained prominence, overtaking AI tokens in market interest. The resurgence of DeFi suggests a shift towards more sustainable financial mechanisms, in contrast to the speculative nature of meme coins.

Several blockchain projects have emerged as major beneficiaries of this sentiment shift. Berachain (BERA) and MegaETH (WETH) have gained traction. Kaito AI’s analysis highlights these as top mindshare gainers.

However, for Berachain, social dominance or consumer awareness is likely ascribed to its recent airdrop and the subsequent listing on Binance and Bitrue. In a statement shared with BeInCrypto, Bitrue committed to supporting the developers on Berachain, a blockchain that introduces a unique Proof-of-Liquidity (PoL) consensus mechanism, believed to be superior to Proof-of-Stake (PoS).

“To celebrate this milestone, Bitrue is rolling out two special events for the exchange’s users. First, Power Piggy Listing: BERA will be available in Power Piggy, Bitrue’s flexible investment product, at 10% APR starting February 6th at 14:00 UTC. Secondly, Deposit Contest: Users who deposit BERA on Bitrue can win rewards based on their deposit amounts,” Bitrue told BeInCrypto.

However, despite the excitement, Berachain’s token price has seen downward pressure due to post-airdrop selling, demonstrating that speculative dynamics are still at play.

Beyond Berachain, MegaETH, Initia, and Monad have captured the market’s attention. These projects focus on technical advancements in scalability, DeFi, and blockchain efficiency. DeFi expert Ignas said this renewed enthusiasm mirrors the early 2020/21 cycle. Then, projects with substantial technical innovation garnered significant hype.

“Technically innovative launches are getting hype again…It’s not just your Degen monkey brain blindly aping into meme coins or simping for a new Celeb Coin – your analytical & research skills can be put to action again,” Ignas wrote.

Investors are now diving deeper into protocol mechanisms, farming strategies, and long-term sustainability rather than unquestioningly speculating on short-lived trends.

Meme Coins Lose Ground as Investors Seek Fundamentals

Amid investors’ shifting focus, the meme coin market cap is declining, with attention shifting towards projects with technical value. Previously, the speculative fervor around meme coins would drive short-term rallies. Now, their lack of fundamental innovation has resulted in diminishing investor confidence.

Crypto executive Tarun Gupta acknowledges the cultural shift. He cites real growth and innovation in protocols like Fluid, Balancer V3, Uniswap, and Ondo Finance.

This maturation of the crypto market indicates that investors are beginning to prioritize real-world applications and financial sustainability over short-term speculative trading. It aligns with recent insights from Glassnode, suggesting that this shift is not accidental but rather a reflection of a more sophisticated investor base.

Retail holders today exhibit a greater understanding of blockchain technology and market changes than in previous market cycles. Rather than chasing meme coins for quick profits, investors are conducting in-depth research on emerging protocols. They also engage with projects through governance and community-building initiatives.

Moreover, industry observers like Ignas highlight that projects rewarding community engagement—such as MegaETH and Berachain—are gaining traction. On the other hand, meme coin traders are often excluded from such incentives.

“Is it just me? We have always learned a few lessons on how to reward the community: Both Bera and MegaETH rewarded value-adding community members. It pays to support projects at an early stage via testnet or simply yapping on X. Notice how Meme coin traders didn’t make it into the whitelist/airdrop for either? I also feel that those who burnt badly with altcoins are either already sold what’s left to stablecoins or consolidating in coins they truly believe in,” Ignas added.

Despite these positive developments, the shift toward technically novel altcoins does not guarantee sustained market stability. While many investors are moving toward high-tech projects, the crypto market remains volatile and sentiment-driven. The market could pivot back to meme coin speculation at any moment, particularly if broader macroeconomic conditions turn unfavorable.

Additionally, while DeFi and RWA tokenization are gaining traction, challenges remain regarding regulation, security, and scalability. Investors must conduct their research.