- AERO has maintained a bullish structure since September.
- The OBV was above two-month highs to signal increased demand.
Aerodrome Finance [AERO] has rallied 39.18% in the past week and was challenging the $2 resistance zone. This region had served as resistance in March and posed an obstacle once more.
Aerodrome Finance to flip $2 to support?
Source: AERO/USD on TradingView
The market structure in the 1-day timeframe remained firmly bullish. It was flipped bullishly on the 18th of September, when Aerodrome Finance prices broke past the lower high at $0.75. Since then, the structure has not turned bearish.
The bulls struggled to overcome the $1.3-$1.5 resistance zone in October. It took till the second half of November for AERO bulls to blast past this resistance. The breakout has occurred on heightened trading volume.
The OBV had fallen in the first of November, but was on its route to recovery over the past ten days. It was above the local highs from the past two months as well, a sign of firm buying pressure.
The RSI was at 76 and in overbought territory but does not show an imminent pullback.
At press time, the $2 psychological resistance had confluence with a bearish order block from March. Hence, Aerodrome Finance buyers could have a tough time pushing beyond this resistance.
A short-term price dip ahead?
Source: Coinglass
The liquidation heatmap of the past week showed that there was a sizeable cluster of liquidity around $1.4. This zone stretched from $1.34 to $1.52.
Interestingly, this band of liquidity has a considerable overlap with the bullish breaker block (cyan box) plotted on the daily timeframe at the $1.5 zone. Hence, a revisit to this zone is possible.
Source: Coinglass
The lower timeframe liquidation levels showed that $1.8 and $2 are the closest magnetic zones that Aerodrome Finance prices could gravitate to.
Realistic or not, here’s AERO’s market cap in BTC’s terms
The $2 zone in particular is likely to get swept in the next few hours before a reversal.
It is unclear how deep a price dip would go. AERO has strong demand zones around $1.5 and below. A price drop below $1.72 would be a sign that buyers should be prepared to bid at $1.34-$1.52.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
