Aerodrome Finance Soars 10% – Can AERO Sustain Above $0.90?

Aerodrome Finance (AERO) has experienced a 10% surge mainly driven by increased whale activity and strong buying around the $0.75 support level. However, a decrease in team buybacks may pose a challenge to sustaining this recovery.

Key Takeaways

Whale accumulation and significant buying activity near the $0.75 support level have fueled AERO's price rebound.
A 20% reduction in team buybacks could weaken demand, potentially leading to renewed selling pressure.
AERO successfully held the $0.75 support level and peaked at $0.93 before retracing; as of now, it is trading at $0.901, a 10.43% increase from the previous day.
The sustainability of AERO’s recovery remains in question.

Aerodrome Finance Soars 10% - Can AERO Sustain Above $0.90?

Aerodrome Whales Support Key Levels

After AERO dipped to $0.75, both investors and large holders moved quickly, investing substantial capital to acquire more AERO. Data from CryptoQuant indicates that large buy orders have dominated the trading activity over the past week.

Aerodrome Finance Spot Average Order Size

Typically, when large orders dominate the spot market, it suggests that major players are actively participating, either buying or selling. In this case, an analysis by AMBCrypto revealed that whales are largely entering the market to buy AERO. According to Coinalyze, Aerodrome saw a buying volume of 10.8 million compared to a selling volume of 9.6 million in the last 24 hours.

AERO Buy-Sell Volume

As a result, AERO recorded a positive Buy-Sell Delta of 1.2 million, indicating that buyers have taken the lead in the market. Exchange activity supported this sentiment; CoinGlass data showed that AERO's Spot Netflow turned negative again after a previous uptick.

AERO Spot Netflow

Currently, Netflow stands at -$83k, suggesting higher outflows. Typically, a negative Netflow signifies that buyers are reasserting themselves against sellers. History demonstrates that such power shifts can lead to price increases.

Examining AERO's Vulnerabilities

Aerodrome Finance has heavily relied on its team’s token buyback initiatives to stabilize prices, often intervening when selling pressure increases. However, recent days have seen a significant reduction in these buybacks. According to Artemis data, buybacks have dropped by 20%, with only $340k allocated recently.

Aerodrome Token Buybacks

This decline in buyback efforts has decreased demand-side capital, which could cause downside pressure and potentially lower prices. Such a shift in the team's strategy puts the recent recovery at risk.

Will AERO Hold Its Gains?

Aerodrome Finance experienced a rally as large investors, particularly whales, stepped into the market to defend a crucial support point. As a result, AERO's bullish momentum gained strength and downside risks minimized, which positions it for further price increases.

If demand continues to hold steady, AERO could see additional gains. A sustained trend could lead Aerodrome to challenge the upper Bollinger band at $1.07.

AERO BB & SFMA

Achieving this would strengthen market conditions, allowing AERO to aim for the Sequentially Filtered Moving Average at $1.20. However, if the team’s buybacks continue to decline and spot demand falters, sellers could gain traction, risking a drop to $0.71, the lower boundary of the Bollinger Band.