Key Takeaways
Can AERO continue this week’s gains?
Likely yes, although the decline in spot CVD was a short-term concern.
What are the bulls’ next price targets?
Beyond $1.6, the $2 and $2.33 ATH would be the next targets.
DeFi protocol Aerodrome Finance [AERO] witnessed a 16% surge in daily trading volume. Since the 15th of September, AERO has rallied 12% and retained its bullish market structure.
Since May, the altcoin has been setting a series of higher lows and higher highs, characteristic of an uptrend. But unlike other altcoins, it had not seen a range-bound consolidation phase.
Source: Coinalyze
Coinalyze data showed a slight uptick in Open Interest. Combined with the positive Funding Rate, it showed short-term bullish sentiment.
However, in the past 24 hours, the spot CVD began to slide lower. Could this be a warning sign, or will the higher timeframe AERO price trend prevail?
AERO did not fill FVG
Source: AERO/USDT on TradingView
The 1-day timeframe demonstrated the uptrend in progress in recent months. The swing points were marked in cyan at $0.717 and $1.6.
These were the key S/R levels on the 1-day timeframe. A move above $1.6 would signal a bullish continuation.
To the south, between $0.88 and $1, there was a fair value gap or imbalance (white box). Usually, such a gap would be tested as a demand zone before the uptrend continues.
The local low at $1.1, alongside the 50-day moving average (green) both served as support, rescuing AERO bulls from a price dip below the psychological $1 support.
The MFI showed a bullish outlook with its reading of 67.
The A/D indicator also began to climb higher in recent days to reflect increased demand. Above $1.6, the next major resistance was at $2.33, its all-time high.
Aerodrome Finance token prices may also react to the $2 level, which has seen volatility in the past.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion