Aerodrome Finance [AERO] was the third in terms of daily gains for the top 100 coins by capitalization. AERO rallied about 12.68%, despite its trading volume remaining relatively low, at about $18 million, per CoinMarketCap.
The rally came as Bitcoin [BTC] led the other cryptos in pushing the market higher by 6% upon surpassing $70,000. Can AERO bulls sustain this trajectory and go ahead to break past the rising trend channel?
AERO price eyes channel breakout
The 3-hour timeframe showed that the altcoin has been trading in a rising trend channel since early February. AERO had just broken above the middle level of the channel, indicating buyers were in charge.
In fact, the MACD bars were green and increasing, reinforcing buyer strength. Its signal lines had also risen above the neutral line.
The Correlation Coefficient for Aerodrome against Bitcoin was 0.84 from 0.26. This showed that the altcoin was moving simultaneously in a similar direction with BTC, which was above $70K.
Such a correlation suggests that if BTC continues to strengthen, the altcoin may as well break past the upper resistance of the channel.
Source: AERO/USDT on TradingView
Conversely, if AERO fails to stay above the mid-level between $0.35 and $0.36, it may lose its correlation to BTC. Furthermore, if BTC falls in price, it could mean the same for the altcoin.
Targets in the case of bulls continuing to buy it stood around $0.40 or higher. On the contrary, Aerodrome could fall to the $0.32 level or lower. Still, traders needed to watch these signs to confirm the continued uptrend.
Apart from its strength in the charts, whales, institutions, and retail were also bullish on AERO.
Why are both Futures and Spot markets CVD bullish?
Capital inflows recorded on-chain contributed to the bullishness.
Smart money was actively buying Base Chain tokens, with AERO leading this lot for the last 30 days with about $837.2K.
Others included TIBBIR and Virtual Protocol [VIRTUAL] at $574K and $359K, respectively, as per data from Nansen AI.
Also, retailers were buying the token, as the market cap traded at $688.48 million. For instance, a CLANKER holder bought $1.04K AERO.
Furthermore, institutions were backing a bullish outlook. After Hypersphere Capital withdrew 2.5 million AERO worth $837K from Bybit this month, AERO became its fifth-largest holding.
All this buy volume flipped the Cumulative Volume Delta to buyer-dominated on both Spot and Future market.
Source: CryptoQuant
Other Hypersphere holdings included USDC, Hyperliquid [HYPE], Worldcoin [WLD], and Maple Finance [SYRUP]. Continuation of AERO accumulation could ignite a break above the rising channel.
Final Summary
- AERO rallied 12% amid capital inflow from smart money, retailers, and institutions.
- AERO faces a critical test around $0.40, which was the trend channel’s upper resistance.
