Is AERO’s $0.94 Breakout the Quiet Signal of a $1.2 Surge That Could Flip the Market On Its Head?

Is AERO’s $0.94 Breakout the Quiet Signal of a $1.2 Surge That Could Flip the Market On Its Head?

Sometimes, a market move is not just a fluke or a fleeting moment—it’s a symphony orchestrated by savvy whales and strategic buys that scream confidence. Aerodrome Finance’s recent surge? It’s not just luck. It’s driven by those colossal holders snapping up tokens aggressively and a 13% spike in buybacks, a classic deflationary play that tightens supply and boosts investor faith. But, hey, before we break out the champagne, there’s a catch—a rocking Stochastic RSI perched at 93 and rising spot netflow from profit takers whisper a cautionary tale: a retracement toward $0.86 might just be lurking around the corner. So, what’s really fueling AERO’s bounce back to a two-week high of $0.94, and can it keep the momentum alive? Let’s dive in and uncover the layers behind this rollercoaster. LEARN MORE

Key Takeaways

What were the primary drivers behind Aerodrome Finance’s recent surge?

The surge was driven by aggressive whale accumulation and a 13% rise in token buybacks, signaling strong market confidence and deflationary measures.

What is the main technical risk that could cause AERO’s retracement?

The main risk is the overbought Stochastic RSI (93) and increased spot netflow from profit takers, which could push AERO back toward $0.86.


After consolidating within a bullish flag, Aerodrome Finance [AERO] successfully retested its $0.9 resistance, hitting a 2-week high of $0.94. 

As of this writing, AERO was trading at $0.90, up 10.53% in 24 hours. At the same time, its volume surged 121% to $64 million, reflecting growing on-chain activity and a steady capital flow. 

But what’s behind AERO’s resurgence?

Aerodrome sees massive whale accumulation

After Aerodrome Finance dropped to a low of $0.7 days ago, the altcoin’s top holders jumped on board and started buying the dip.

As such, top holders have recorded a positive balance change for five consecutive days, increasing their holdings by 5.9% reaching 1.54 billion. Over this period, whales have bought 90.59 million tokens, per Nansen. 

Aero top holders

Source: Nansen

Typically, when whales turn to aggressive accumulation, it signals growing market confidence, a clear bullish signal. 

Token buyback soars 

After AERO dropped for six consecutive days, the team turned to token buybacks and increased the revenue allocated to them. 

This shift followed a sustained decline in AERO, reaching a low of $0.6. Since then, revenue spent on buybacks jumped from $289k to $453k. 

Aerodrome Finance token buybacks

Source: Artemis

Currently, the amount spent on repurchasing tokens is up 13% reaching a 3-month high. Usually, token buybacks indicate that the protocol is healthy and confident in its long-term value. 

This is a deflationary strategy, as it shrinks the supply available for immediate selling. In a sense, buybacks distribute value to holders without providing new tokens. 

In fact, the protocol’s health is further evidenced by rising Holder Revenue. Inasmuch, holders’ revenue has skyrocketed to $1 million before stabilizing at $536k. 

Aero holder revenue

Source: DefiLlama

Just as with buybacks, rising revenue incentivizes holders to keep their holdings locked, thereby reducing supply and further stabilizing prices.

Profit takers not left behind

As AERO surged following weeks of dismal performance, holders and speculators alike rushed into the market to cash out.

According to CoinGlass, the altcoin has recorded a positive Spot Netflow for four consecutive days. At press time, Netflow was $11k, a drop from $618k the previous day, indicating increased inflow.

Aerodrome spot netflow

Source: CoinGlass

Often, increased inflows into exchanges have led to intense downward pressure, a precursor to lower prices.

Can AERO hold on?

At press time, the altcoin’s Stochastic RSI surged to 93, reaching overbought territory, reflecting rising buyer dominance.

Often, when these indicators reach overbought levels, it signals brewing volatility, but they can remain elevated for a period before the market retraces.

AERO Stoch & SAR

Source: TradingView

Therefore, if buyers continue to accumulate while AERO implements deflationary measures, such as token repurchases, we could see it breach its Parabolic SAR at $0.94.

A break of this while strengthens the altcoin’s target to $1.2, where SAR previously faced rejection. However, if profit takers gain ground and buyer momentum fades, AERO will retrace to $0.86.

Post Comment

WIN $500 OF SHOPPING!

    This will close in 0 seconds