- Summary:
- We look at Aerodrome Finance price prediction as the crypto asset flashes signs of a recovery following a long losing streak in May.
Aerodrome Finance price inched up on Wednesday, gaining 0.4 pwercent to trade at $0.950 at the time of writing. Adding to Tuesday’s gain of 1.7%, t today’s gain is a strong indicator in a long time that AERO could be readying to reverse the steep decline it has experienced for the last ten days. In addition, the crypto asset has recorded a rise of 94 percent in its trading volume in the last 24 hours, according to data from CoinMarketCap.
AERO is attempting to reverse a trend that has seen it lose about 13.6 percent of its value in the last week. Designed to serve as the central liquidity AMM platform for Base ecosystem, Aerodrome has struggled to find stability since it listed on Centralised Exchanges in February. It rose steadily from late-February to mid-April, on the back of an expected uptick in crypto market performance as Bitcoin hit all-time highs. However, the failure by the crypto market to rally post-halving has dampened the mood around many digital assets, and could keep the likes of Aerodrome under pressure for weeks to come.
Aerodrome is the biggest contributor to the Base ecosystem Total Value Locked (TVL), underlining its importance to the success of Base’s DeFi market. According to DeFiLlama, Aerodrome Finance’s TVL stands at $641 million as of this writing. That represents about 43 percent of Base ecosystem’s total TVL of $1.46 billion. Therefore, increased DeFi activity could help prop up the value of AERO even as the market waits for a post-halving resuscitation.
Technical analysis
My Aerodrome Finance price prediction analysis signals that the buyers are currently in control, with the pivot at 0.949. The uptrend is likely to continue if the buyers keep the price above that mark. That could help build the momentum to breach the resistance at 0.973, and potentially further up to test the psychological level of 1.000 in extension. Conversely, a move below 0.949 will likely swing control in favour of the sellers, with the first support likely to be at 0.922. A continuation of the control will likely break the support and invalidate the upside view. Furthermore, the resulting momentum could push the price further down to test 0.902.
