Amid a broader crypto market recovery, Aerodrome Finance [AERO] staged a strong rebound, erasing most of its December losses. The altcoin held firm at the $0.40 support level and climbed to a local high of $0.59 before easing slightly.
At the time of writing, AERO was trading at $0.558, marking an 18.75% daily gain. This surge was supported by a 70% increase in trading volume and a 17% rise in market capitalization, signaling stronger on‐chain activity.
Dip buyers drive Aerodrome Finance recovery
After AERO breached $0.4 support days ago, the team stepped in with buybacks, inspiring buyers to return. Aerodrome Finance purchased and max locked 940k AERO as part of its programmatic market-aware buyback model.
The move incentivized other market participants and stepped in to purchase the altcoin at a discount.
As such, buyers returned across the futures and spot markets. On the spot side, the altcoin recorded 27.1 million in Buy Volume compared to 24.2 million in Sell Volume, at press time.
For that reason, the marker recorded a positive Delta of 2.9 million, a clear sign of aggressive spot accumulation.
Furthermore, the exchange activities also echoed this accumulation trend. According to CoinGlass, Aerodrome’s Spot Outflows jumped to $4.06 million, while Inflows dipped to $2.9 million.
As a result, the altcoin’s Spot Netflow declined 421% to -$1.16 million, suggesting increased accumulation. Often, increased spot buying rises scarcity, which in turn accelerates upward momentum, leading to higher prices.
Futures sentiment flips bullish
Open Interest (OI) surged 32% to $35.4 million, as of writing, while derivatives volume jumped 92% according to CoinGlass data.
When OI and volume rise in tandem, it signals increased participation in the Futures market, whether taking short or long positions.
Coupled with that, significant capital was deployed into futures, resulting in $37.6 million in Inflows.
Meanwhile, AERO’s Long Short Ratio jumped to 1.0, indicating a higher demand for long positions. Increased demand for longs suggests that investors were bullish and anticipate more gains.
Can AERO’s momentum hold?
Aerodrome Finance rallied as buyers stepped in, bought the dip, and successfully defended a key support level.
As a result, the altcoin’s Relative Strength Index (RSI) jumped to 54, then fell to 50 at press time, indicating strong buyer momentum.
Likewise, AERO jumped above its short-term moving average, EMA20, suggesting strong upward momentum.
Notably, the altcoin was testing the EMA50 at $0.61, a move that could signal trend strength and its continuation if successful. If buyers pressure hold, AERO will flip these levels and target $0.73.
Conversely, if sellers cash out, the altcoin could retrace and fall below $0.5 again.
Final Thoughts
- AERO rallied 18% to $0.63 after successfully defending the $0.4 support level.
- Dip buyers stepped into the spot and futures market, incentivized by the recent token buyback.
