The crypto market recently saw a significant development with the merger of Aerodrome Finance [AERO] and Velodrome Finance under Dromos Labs. While this unification of dominant trading protocols on Base and Optimism was anticipated, it has done little to instill confidence in AERO’s price performance, which continues to face considerable headwinds.
Persistent Bearish Trends Define AERO's Trajectory
Despite the strategic merger announced on November 13th, Aerodrome Finance [AERO] has been entrenched in a persistent downtrend across higher timeframe charts. The token has consistently formed lower highs and lower lows, achieving short-term bearish targets of $0.82 and $0.74. Technical analysis confirms a strong bearish outlook, with the weekly session notably closing below $0.717, effectively dismissing any immediate prospects of a recovery. This suggests that any price bounce toward or even beyond $1 would likely serve as a prime selling opportunity for traders. Both the Relative Strength Index (RSI) and On-Balance Volume (OBV) across weekly and daily charts corroborate this negative momentum, indicating sustained selling pressure since late August.
Outlook: Further Losses More Likely Than a Reversal
The prevailing market sentiment for AERO remains fearful, with the daily chart mirroring the bearish structure of the weekly. A significant long-term support level is identified at $0.474, which is the next potential target for continued declines. While a bullish reversal is technically possible, it hinges on AERO breaching the $0.74 resistance level with substantial trading volume and increased speculative interest, ideally coupled with a broader rally in Bitcoin [BTC]. However, the more probable scenario points to further price depreciation for Aerodrome Finance. A retest of the $0.70-$0.75 area is anticipated to offer shorting opportunities, reinforcing the bearish outlook as the market eyes the $0.474 support level as its next major target.
