Aerodrome Finance [AERO] saw a merger with Velodrome Finance under Dromos Labs to form Aero. This merger news came on the 13th of November.
The merger of the dominant trading protocols on Base and Optimism was an exciting development.
While the roadmap promised more technical developments, it did little to buoy market confidence. A price report from November noted the persistent AERO downtrend on the higher timeframe charts.
The $0.82 and $0.74 short-term targets have been achieved, and bears have pushed prices even lower.
Mapping AERO’s longer-term trend
Source: AERO/USD on TradingView
On the weekly chart, the AERO structure saw a bearish push. The weekly session closed below $0.717, wrapping up the debate of a recovery. Any price bounce toward or even beyond $1 would be for selling.
On the weekly chart, AERO faced a bearish move as the session closed below $0.717, ending hopes of a recovery. Any bounce toward or above $1 now appears to be a selling opportunity.
At press time, the RSI confirmed bearish momentum, while the OBV trended lower with successive lower highs and lows since late August. The next significant long‑term support sits at $0.474.
Source: AERO/USD on TradingView
The daily chart also agreed with the bearish outlook. It was also forming lower highs and lower lows. The most recent lower high at $0.74 needs to be breached to flip the structure bullishly.
The RSI and OBV, like the weekly chart, showed bearish momentum and evident selling pressure on the 1-day timeframe as well.
A bullish reversal could play out IF…
As mentioned, a rally past $0.74 would be the first step. This rally would need high trading volume and increased speculative interest to solidify the chances of a recovery.
A retest of $0.74 as support, with these conditions fulfilled, and a Bitcoin [BTC] also headed higher, would be a good sign of bullish conditions.
AERO traders, here’s what to watch next!
The more likely scenario involved further losses in the AERO token prices. The market sentiment remained fearful, despite the Bitcoin gains since the lows on the 1st of December.
The higher timeframe price action of Aerodrome Finance also supported the bearish side.
Therefore, a retest of the $0.7-$0.75 area would yield an opportunity to go short. The next swing target would be the $0.474 support level, marked by the weekly low from June.
Final Thoughts
- The weekly and daily timeframes agreed that AERO was headed for more losses.
- If the current Bitcoin and wider market bounce is sustained in the coming weeks, Aerodrome Finance token prices could see a bullish trend reversal.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
