AERO's Recent Surge: Key Levels for Bulls to Maintain

Aerodrome Finance (AERO) has experienced a significant price increase recently, with a notable rise of 10% in just 24 hours, pushing it back above the $1 mark. This surge is linked to positive momentum within the Base ecosystem and increasing interest in AERO tokens. However, for the bullish trend to continue, AERO's price must remain above $1.20 to target a potential resistance zone at $1.58.

Key Takeaways

AERO experienced a 10% increase following a surge in Base tokens and a rise in Open Interest to $10 million.
Sustaining a price above $1.20 could lead to a retest of $1.58, considered a significant resistance level for this season.
The price movements indicate a series of higher highs and lows, with a recent spike in long-term holder participation.

Aerodrome: Examining AERO's 44% surge as price eyes $1.50+

Analyzing AERO’s Recent Breakout

Recent price charts illustrate that AERO has been creating higher highs and lows. The price nudged past the $1.20 resistance level but retracted back into a consolidation phase soon after. Indicators like the MACD showed positive momentum, remaining green, and the moving averages trended upwards, indicating bullish sentiment. Additionally, Open Interest saw a significant rise from $6.96 million to $10 million.

AERO Source: TradingView

November has proven to be positive for AERO, recovering all losses incurred on October 10th. Although it still trades below August's levels, maintaining momentum above $1.20 could pave the way toward $1.58, the seasonal peak for the altcoin.

Holders Show Increased Activity

On-chain data for AERO indicates a rise in long-term investor engagement. The number of holders increased from 670,560 on October 12th to 682,260 recently.

AERO Source: CoinMarketCap

Holder distribution reveals that the top 10 users own about 60% of the total tokens, while the remaining 40% is owned by other investors. Notably, the largest individual ownership accounts for approximately 1.78%, equating to around 31.74 million AERO, valued at $37 million.

Key Fundamental Drivers

Network activity is crucial to AERO’s current performance. The number of Daily Active Users reached 51,600 at the time of writing, as reported by Token Terminal. Active Addresses dipped to about 7,700, yet Trade Counts soared to a three-year high, totaling 166.7 million, with daily Trades hitting 5.2 million.

AERO Source: Token Terminal

Additionally, Total Value Locked (TVL) on Aerostrategy reported $697,585, whereas the overall TVL reached $472 million, according to Dune Analytics, with cumulative trading volume at $317 billion. Aerostrategy is effectively directing trading volume into veAERO, which may elevate the token’s burn rate and tighten the circulating supply. Should demand persist, this deflationary effect could foster further upward momentum for AERO.