Aerodrome Finance (AERO) Faces Turbulence: Will the 14% Drop Lead to a Hard Landing or a Quick Rebound?
Aerodrome Finance (AERO) has dropped over 14%, trading around $1.01 with a market cap of $913.55 million and a daily trading volume surge of 85.11%. The asset faces bearish pressure, dropping to support levels near $0.9991, with potential further declines. Indicators such as MACD and Chaikin Money Flow (CMF) suggest increased selling momentum, while the RSI at 43.65 reflects a neutral to slightly bearish phase. A bullish reversal could push AERO to resistance levels at $1.11 or $1.25. However, sustained bearish trends may dominate the market in the short term.
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AERO Price Drops Amid Market Turmoil
Aerodrome Finance (AERO) has witnessed a significant 14% drop in its price, currently hovering around $1. The daily trading volume for AERO has jumped by 85%, indicating increased market activity. While bulls attempt to push the price upward at various points, bearish control in the crypto market has resulted in conflicting signals, with both green and red flags visible across various assets. Notably, Bitcoin is trading at approximately $103.4K and Ethereum at about $3.5K, reflecting mixed sentiments across the broader crypto space.
Price Movement and Market Levels
In the morning hours, AERO traded within a higher bracket at $1.27 before retracing to a downside zone of $0.9549 due to bearish control. At the time of writing, AERO stands at roughly $1.01, supported by a market cap of $913.55 million and a daily trading volume of $264.05 million as reported by CoinMarketCap. A gradual recovery may potentially push AERO’s price upward, but this rebound depends on a sturdy bullish shift in the broader market.
Potential Scenarios for AERO: Bearish and Bullish Outlooks
With the current bearish pressures, AERO could decline further toward the $0.9991 support level. If the downside correction intensifies, it may test its recent low at $0.9980 or drop even lower. Conversely, if bulls regain momentum, they could push the price toward $1.11 resistance, and with extended bullish pressure, AERO could reach $1.25. The emergence of a golden cross may enhance this upward potential under favorable market conditions.
Technical Indicators Reflect Bearish Sentiment
The Moving Average Convergence Divergence (MACD) line for AERO has crossed below its signal line, signifying a potential bearish crossover. Additionally, the Chaikin Money Flow (CMF) indicator is at -0.14, highlighting selling pressure in the market. As capital flows out of the asset, a value closer to -1 indicates stronger selling momentum, suggesting sustained bearish conditions.
Relative Strength Index and Bull Bear Power Analysis
The daily Relative Strength Index (RSI) for AERO is at 43.65, placing it in a neutral to slightly bearish territory. A drop below 40 signals an intensified bear market, while a rebound above 50 could ignite renewed buying pressure. Furthermore, the Bull Bear Power (BBP) indicator at -0.1701 confirms that bears currently dominate the market. A further drop below zero will likely indicate a persistent downward trend.