Why Aerodrome Finance’s 60% 7-day surge means $1 could fall next!
Are AERO bulls just getting started?
- AERO bulls suffered immensely from the downtrend that began in December and lasted till late April
- DEX token made 45% gains over the past four days, following the Coinbase announcement
Aerodrome Finance [AERO], the automated market maker (AMM) and decentralized exchange (DEX) on the Base network, has seen high volume lately. In fact, DeFiLlama data revealed that the DEX’s 24-hour and 30-day volumes have been higher than Uniswap’s [UNI].
News came out last Friday that Shopify will be collaborating with the U.S centralized exchange Coinbase to roll out early access to stablecoin payments using Circle’s USDC. This update came a day after the announcement that Coinbase would be integrating Base DEXs into their main app.
This saw a flurry of excitement for AERO users, prompting the token to rally by 45%. At press time, the $0.8 resistance was the final hurdle for the bulls before they could challenge $1.
AERO begins its recovery with the push beyond $0.8
Since December, the Aerodrome Finance token has been on a downtrend. It fell a long way below the November lows, a sign that selling pressure was much greater than the buying pressure towards the end of 2024.
At the time of writing, the altcoin was still 25% below its early November 2024 low at $1.06. However, with its ascent above the high at $0.8, the 3-day market structure was bullish at press time. The $0.52-level had acted as a demand zone earlier this month.
The next key resistance zone is at $1, a psychological round number resistance. Due to how deep AERO has dropped since December, the Fibonacci retracement levels are even higher, at $1.55 and $1.89.
Despite the bullish structure break, the CMF was resolutely below the +0.05-mark to underline the lack of heavy capital inflows. The Awesome Oscillator was barely above zero – Another testament to the idea that momentum is only beginning to turn bullish on the higher timeframes.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
