Headline: Berachain (BERA) Pops After “Bera Builds Businesses” Reveal — Technicals Turn Bullish, But TVL Collapse and Refund Clause Raise Red Flags Berachain’s native token BERA vaulted into the spotlight this week, drawing fresh capital and chatter after the foundation rolled out its “Bera Builds Businesses” (BBB) model. The DeFi-focused chain’s token surged 15.48% in the past 24 hours and is up 62.58% over the last seven days, with the most recent rally beginning on January 14 when BERA opened at $0.593. What changed: the BBB model The end-of-year update outlining the BBB initiative was the primary catalyst. Under the plan, the Berachain Foundation said it will “internally build, acquire, or partner closely with a small set of businesses that directly create value” for the BERA token — an explicit shift toward cash-flow-generating operations designed to back token utility and long-term value. Why some investors are cautious Despite the bullish narrative, several material risks remain. Total Value Locked (TVL) on Berachain has collapsed from earlier highs around $3 billion to just $178 million at the time of writing, according to DeFiLlama — a dramatic drawdown that undercuts the network’s on-chain economic heft. Compounding scrutiny, an investigation revealed the chain provided an institutional investor with downside protection — an uncommon and controversial provision in crypto for underperforming assets. A specific refund clause tied to Brevan Howard’s Nova fund expires on February 6, 2026, which has led some market participants to question whether the current price momentum is organically driven or influenced by that timeline. Technical picture On the daily chart (BERA/USDT, TradingView), the token remains deeply below its October peak — about 69.64% off the $3.08 high recorded in the first week of October — but technical indicators are showing renewed strength. The 1-day structure is beginning to look bullish: the RSI sits above 60, signaling strong momentum, and On-Balance Volume (OBV) has posted new highs, reflecting heavy buying pressure. Those signals could fuel further upside, but they coexist with the broader fundamental concerns noted above. Takeaway BERA’s short-term breakout has gotten traders excited, and the BBB strategy offers a clearer path toward cash-flow orientation. Yet the sharp TVL decline and the contentious downside-protection/refund clause mean risk is elevated. Market participants should proceed cautiously, consider profit-taking strategies, and do their own research before making decisions. Sources: BERA/USDT chart (TradingView); TVL data (DeFiLlama). This article is informational and not investment advice — trading cryptocurrencies carries significant risk. © 2026 AMBCrypto. Read more AI-generated news on: undefined/news