AERO Price Forecast: Is a Decline to $0.474 Inevitable?

Aerodrome Finance (AERO) recently merged with Velodrome Finance through Dromos Labs, stirring excitement in the crypto community. However, despite the merging of these leading trading protocols, investor confidence has been waning. This article will analyze whether AERO's price could fall to $0.474.

Key Takeaways

The AERO token shows a downward trend after its merger with Velodrome Finance, which was announced on November 13.
Current technical indicators show sustained bearish momentum with potential support at $0.474.
A move above $0.74 could signal recovery, but it needs high trading volume and positive sentiment in the market.
A continuation of bearish momentum is more likely, with shorting opportunities around the $0.7-$0.75 range.

AERO’s merger bounce fades quickly as investor confidence rapidly fades

AERO's Long-Term Trend Analysis

AERO 1-week Chart

Source: AERO/USD on TradingView

The weekly charts indicate a bearish trend for AERO. The weekly session closed under $0.717, eliminating any chances of a recovery. If there are any price bounces towards or above $1, they might be viewed as opportunities to sell.

Currently, the Relative Strength Index (RSI) reflects bearish momentum, while the On-Balance Volume (OBV) indicates a downward trend, showing lower highs and lows since late August. The next critical long-term support level is $0.474.

AERO 1-day Chart

Source: AERO/USD on TradingView

The daily chart also confirms a bearish outlook, with AERO forming lower highs and lower lows. The most recent lower high stands at $0.74, which must be surpassed to indicate a bullish reversal.

Both the RSI and OBV on the daily timeframe reflect ongoing bearish momentum and significant selling pressure.

Conditions for a Bullish Reversal

A rally above $0.74 would be the initial signal of potential recovery. For this to happen, a surge in trading volume and heightened speculative interest is necessary. If AERO can retest $0.74 as a support level under these conditions, alongside Bitcoin [BTC] trending higher, it would indicate favorable bullish conditions.

What AERO Traders Should Monitor Next

The prevailing sentiment leans toward further losses in AERO token prices. Despite Bitcoin's recovery since December 1, market fear has persisted.

Higher timeframe price action suggests continued bearish trends for Aerodrome Finance. Therefore, a retest of the $0.7-$0.75 zone may present shorting opportunities. The next anticipated swing target would be the $0.474 support level, which corresponds to the weekly low recorded in June.

Conclusion

Disclaimer: The information provided is purely the writer’s opinion and should not be considered as financial, investment, or trading advice.