Aerodrome Finance (AERO) recently staged a notable comeback, experiencing a 10% price surge after a period of bearish pressure. This impressive recovery has sparked discussions across the crypto market regarding its underlying drivers and, crucially, its long-term sustainability amidst evolving market dynamics.
Whale-Powered Resurgence
The primary catalyst behind AERO's recent rebound from its $0.75 support level was a significant influx of whale activity and robust buy-side pressure. Data indicates that large entities aggressively accumulated AERO, with buy volume outperforming sell volume by a notable 1.2 million over a 24-hour period. This shift was further evidenced by a negative Spot Netflow, signaling that more AERO tokens were moving out of exchanges than into them, a classic indicator of strong buyer dominance and an anticipated precursor to upward price momentum.
Sustainability Under Scrutiny
Despite the strong buyer-led recovery, AERO's future trajectory faces a significant challenge from a substantial reduction in team token buybacks. Historically, these buyback programs have been instrumental in propping up AERO's price during periods of selling pressure. However, recent data reveals a 20% drop in these strategic buybacks, with only $340,000 allocated, significantly curtailing the demand-side capital that typically supports the token. This decreased team commitment introduces a critical vulnerability, threatening to undermine the current bullish momentum if organic spot demand cannot consistently offset the reduction in these crucial support mechanisms.
