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AERO Price Prediction: Why Aerodrome Finance Could Rally to $1.50 Soon

Highlights:

  • Aerodrome Finance has pushed through the $1.082 resistance 
  • Sustained momentum above $1.082 could send the price to $1.50 soon
  • Macro factors and growing adoption are likely to sustain bullish momentum

Aerodrome Finance (AERO) has defied the weakness that has characterized the cryptocurrency market for the past month. It has recorded an impressive 32% gain in the last 30 days, becoming one of the few top-100 cryptocurrencies to achieve this. Today, Aerodrome continues displaying strong bullish sentiment. In the previous 24 hours, Aerodrome Finance has gained by 2.69% to trade at $1.09

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At the same time, Aerodrome Finance trading volumes are on the rise. Over the last 24 hours, Aerodrome Finance’s trading volumes have increased by 58.59% to $186.687 million. This directional alignment of trading volumes and prices is an indicator that buyers are coming in strongly. This means investors expect Aerodrome Finance to continue outperforming the broader market in the foreseeable future. There are several factors that support such a price action for Aerodrome Finance in the short term. 

Grayscale’s DeFi Move A Key Driver to AERO Price

One of them is the recent move by Grayscale to replace MakerDAO with Aerodrome Finance as it rebalanced its DeFi funds. Under the new realignment, Aerodrome Finance now accounts for 6% of Grayscale’s DeFi funds. This move by Grayscale has benefited Aerodrome Finance in a big way in terms of its perception. It has given the market the perception that Aerodrome Finance is one of the most important cryptocurrency players in DeFi. This perception could see more institutions looking for exposure to DeFi pivot to Aerodrome going into the future.

At the same time, developers looking to build next-generation DeFi applications could also pivot more to Aerodrome Finance. The result is that the use value of Aerodrome Finance could increase over time. By extension, the value of AERO could keep going into the future. The ongoing strength amidst broader market weaknesses is an indicator of the rising demand for Aero.

Whales Continue to Accumulate AERO

Aerodrome Finance is also benefiting from growing whale interest. Since June, big money players have been pushing capital into Aero. This is a big deal for two reasons. First, whales’ purchases usually affect the demand and supply dynamics in favor of an upside rally. This is already being exhibited in AERO’s price action recently.

Whale activity is also driving retail FOMO into Aerodrome Finance, especially now that it is one of the few cryptocurrencies still showing strength. If the current price dynamics continue and whales continue buying strongly, AERO could be headed to new highs in the short to medium term.

Macro Factors Favor Continuation of AERO Rally

Beyond Aerodrome’s internal dynamics, the macro environment also favors Aerodrome Finance. The Federal Reserve recently announced a 25-basis-point cut in interest rates. At the same time, they announced that QT will officially end on December 1. These two moves are significant as they signal an increase in liquidity going forward.

At the same time, relations between China and the US are set to improve following the recent meeting between Trump and Xi. All these moves could see all risk-on assets rally going forward. For Aerodrome Finance, which is already showing strength, this could see its price rally to new highs.

Technical Analysis – AERO Price Breaches 24-Hour Resistance

Aerodrome Finance is in a strong intraday rally. This rally has seen its price rally through the $1.082 resistance. While bears are fighting to regain control, the price has held steady above the $1.082 resistance.

Aero
Source: TradingView

This is an indicator that bullish sentiment is stronger. If bulls sustain momentum in the short term, a rally to prices as high as $1.50 could follow. On the other hand, if bullish momentum is not strong, then a consolidation around $1.082, which is now support, could follow.

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