Berachain anticipates resistance as RSI nears overbought following a 36% weekly spike

In the past week, Berachain has seen a surge of over 35%, bouncing back after a period of consolidation.

At the time of writing, Berachain (BERA) is trading at $7.89, nearing a significant resistance level of $8.34. If it manages to break through this point, it could potentially continue its upward trajectory toward the $10 psychological price. The relative strength index has risen to 59, approaching overbought levels but still allowing room for growth. 

Berachain has immediate support at $6.53 and a stronger support level at $5.14. The Bollinger Bands indicate that the price is narrowing within a range. Both the 10-day and 20-day estimated moving averages support further upward movement, corroborating the bullish trend.

The moving average convergence/divergence indicator remains positive at 0.282, indicating that momentum is still ongoing. However, 24-hour trading volume has dropped 33% to $187.7 million, suggesting some easing in buying pressure.

Berachain's bullish outlook is bolstered by on-chain data. According to DefiLlama, the network's total value locked has increased to $3.14 billion, approaching its record high of $3.26 billion on Mar. 3.

From Mar. 23 to Mar. 25, the decentralized exchange trading volume surged from $36 million to $132 million. Moreover, the network's stablecoin market cap has hit a new all-time high of $1.2 billion.

Berachain's recent surge follows the introduction of its proof-of-liquidity system on Mar. 24, which expands governance and emissions beyond its native BEX pools. POL enables users to earn rewards through new vaults distributing BGT emissions. Within hours of its launch, active incentives reached $355,000, with the top vault offering an APR of over 200%.

Currently, BERA is still 45.8% below its all-time high of $14.83. Traders are closely monitoring whether it can surpass the $8.34 level. A strong close above this mark could propel prices higher, but failure to do so may result in a pullback toward $6.53 or $5.14. The next move of the RSI will likely determine if the rally continues or if profit-taking takes over.