Berachain funding rate out of control triggers short squeeze, BERA surges 82% in one day

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.