Aerodrome Finance (AERO) has recently seen a strong resurgence, trading at $0.90 after successfully retesting its $0.9 resistance and hitting a two-week high of $0.94. This impressive 10.53% rise in 24 hours was accompanied by a massive 121% surge in trading volume.
What's Driving the Rally?
The surge is primarily attributed to two factors: aggressive whale accumulation and increased token buybacks.
- Whale Buying Spree: Following a drop to $0.7, AERO's top holders began aggressively "buying the dip" for five consecutive days, increasing their combined holdings by 5.9% (over 90 million tokens). This consistent whale accumulation is a strong signal of growing market confidence.
- Deflationary Token Buybacks: After a six-day decline, the Aerodrome team increased the revenue allocated for token buybacks by 13% to a three-month high of $453k. This strategy is seen as a sign of the protocol's health and confidence in its long-term value, as it reduces the immediate supply available for sale. Furthermore, Holder Revenue has also risen, incentivizing holders to lock up their tokens, which further stabilizes the price.
The Main Risk of Retracement
Despite the strong fundamentals, the article highlights a key technical risk that could cause AERO to pull back:
- Overbought Conditions and Profit Taking: The Stochastic RSI has surged to 93, pushing AERO into overbought territory. This, combined with an increase in Spot Netflow (indicating profit-takers are sending tokens to exchanges to sell), suggests downward pressure is brewing. This combination of factors is the main technical risk that could push AERO to retrace toward the $0.86 support level.
Outlook: Can AERO Hold Its Gains?
If buyers continue their accumulation and the deflationary buyback measures persist, AERO could potentially breach its next resistance at $0.94 and target $1.2. However, if momentum fades and profit-takers take over, the technical risks suggest a likely retracement to $0.86.
October 2025, Cryptoniteuae