Decentralized exchange tokens are falling amid the rising market uncertainties, Aerodrome Finance at key level aims for a reversal run.
The declining trend in the Bitcoin BTC $82 617 24h volatility: 0.3% Market cap: $1.64 T Vol. 24h: $44.16 B price has significantly affected the altcoin market. Among the fastest declining tokens, DeFi segment takes the spot, with Avalanche taking a hit of 8% in the past 7 days, HBAR $0.16 24h volatility: 0.9% Market cap: $6.73 B Vol. 24h: $300.62 M down by 6.69% and UNI $5.75 24h volatility: 1.2% Market cap: $3.47 B Vol. 24h: $155.15 M losing 10.37%. Aerodrome Finance is one of the top losers with a 17.05% drop this week.
Currently, AERO $0.35 24h volatility: 12.3% Market cap: $282.60 M Vol. 24h: $50.74 M struggles to hold dominance at the $1 psychological mark but has lost the $800 million valuation. The market cap of Aerodrome Finance stands at $791 million, with a 24-hour drop of 2.70%.
AERO Token Price Trends
In the daily chart, the Aerodrome Finance price trend reveals a falling trend under the influence of a resistance trend line. However, the crucial support near the $1 psychological mark continues to hold the bullish dominance.
The intraday candle hints at a Dogecandle teasing a bullish reversal. Adding to the bullish chances, the Aerodrome Finance price trend reveals a teasing a double bottom reversal. Furthermore, the daily RSI line shows a bullish divergence in the double bottom. Thus, a bullish reversal will likely overcome the local resistance trend line.
In confluence with the resistance trend line, the 61.8% Fibonacci growth at $1.264 and the 200-day EMA line. A bullish breakout above these crucial levels will challenge the double bottom neckline near the $1.35.
In a bullish scenario, the resistance trend line breakout will likely challenge the previous peak at $2.20. Hence, the current buy-the-dip opportunity offers an upside potential of more than 100%.
On the flip side, a bearish breakdown will likely test the next critical support levels at $0.89 or $0.72.
Transaction Volumes and Holder Growth Signal Potential
Supporting the bullish chances, Aerodrome Finance’s transaction volumes are still higher than the rest of the decentralized exchange tokens. Currently, Aerodrome Finance’s transaction volume is nearly $10 million. This is significantly higher and accounts for more than 50% of the transaction volumes of top DEX tokens.
Furthermore, the number of holders of AERO token has seen a consistent growth compared to the other DEX tokens. It is one of the few to see a positive growth despite the increased market volatility.
Finally, the market cap per active users of Aerodrome Finance of nearly $75k. This is significantly lower than that of competitors, reflecting the massive growth potential as a rising DEX token.
Conclusion
Aerodrome Finance faces critical levels amid its recent decline. If the $1 psychological mark holds, a potential bullish breakout could target over 100% gains. However, failure to sustain support may lead to further downside testing.
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