- AERO has maintained a bullish structure since September.
- OBV was above two-month highs to signal increased demand.
Aerodrome Finance (AERO) rose by 39.18% over the past week and was challenging the $2 resistance zone. This region had served as resistance in March and again constituted an obstacle.
Will Aerodrome Finance donate $2 to support?
Source: AERO/USD on TradingView
The market structure on a one-day time frame remained firmly bullish. It was reversed bullishly on September 18, when Aerodrome Finance prices broke above the high below $0.75. Since then, the structure has not turned bearish.
The bulls struggled to overcome the $1.3 to $1.5 resistance zone in October. It was not until the second half of November that the AERO bulls broke through this resistance. The breakout occurred on the back of increased trading volume.
The OBV had fallen on the first of November, but was on track to recover over the past ten days. It was also above the local highs of the past two months, a sign of strong buying pressure.
The RSI was at 76 and in overbought territory but does not show any imminent pullback.
At press time, psychological resistance at $2 was converging with a bearish order block from March. Therefore, Aerodrome Finance buyers may struggle to break through this resistance.
A short-term price drop to come?
Source: Coinglass
Last week’s liquidation heat map showed that there was a large liquidity cluster around $1.4. This zone spanned from $1.34 to $1.52.
Interestingly, this liquidity band significantly overlaps with the bullish breakout block (cyan box) plotted on the daily timeframe in the $1.5 area. A revisit of this area is therefore possible.
Source: Coinglass
Liquidation levels on lower time frames have shown that $1.8 and $2 are the closest magnetic zones that Aerodrome Finance prices could gravitate towards.
Realistic or not, here is the market capitalization of AERO in terms of BTC
The $2 area in particular is expected to be swept in the coming hours before a reversal.
It’s unclear how big a price drop would be. AERO has areas of high demand around $1.5 and below. A drop in price below $1.72 would be a sign that buyers should be willing to bid between $1.34 and $1.52.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
