Hypersphere Ventures invested nearly $680,000 in Aerodrome Finance (AERO), as Smart Money balances increased by 50.77% and the FX supply decreased, tightening liquidity. Notably, the total accumulation reached 1.76 million AERO over seven days, highlighting a sustained rotation from capital to assets.
As a result, circulating supply on exchanges decreased, reducing immediate selling pressure. Furthermore, Smart Money’s positioning has grown aggressively, thereby strengthening the conviction of big players.
This combination suggested that demand had exceeded available supply, creating conditions in which prices responded more abruptly to buying. However, this concentration could weaken if new capital flows fail to maintain the current pace of accumulation.
Double bottom recovery changes the structure of the AERO market
The price of AERO The stock formed a clear double bottom near the $0.37 demand zone before initiating a rebound that reclaimed the $0.3982 level as support. This recovery phase follows a sharp correction from previous highs, but buyers have intervened decisively at lower levels.
After reclaiming this support, price pushed towards the $0.4406 resistance, signaling a shift from a bearish continuation to a recovery structure.
Additionally, the formation of higher lows reinforced the idea that selling pressure had weakened after the breakout. However, resistance near $0.4406 and $0.4702 remains significant, which could limit the continuation unless buying pressure builds further.
At press time, DMI readings showed +DI climbing to 33.95 while -DI held at 17.36, indicating that buyers had taken directional control. Meanwhile, ADX remained at 17.82, reflecting the weak strength of the overall trend despite the change in direction.
This divergence suggests that although buying pressure dominates, the move has not yet turned into a strong trend.
Rising Open Interest Rates Confirm Leveraged Participation
Open Interest (OI) rose 8.54% to $27.08 million at the time of writing, signaling that new positions entered the market during the rally. This rise indicates that traders actively engaged in the move, rather than prices being determined solely by spot accumulation.
As participation expanded, leveraged exposure increased along with prices, strengthening the rebound phase. However, rising OI also introduces risk, as crowded positioning tends to amplify volatility near key levels.
Additionally, leveraged traders react quickly to price changes, which could accelerate both continued upside and downside pullbacks based on changes in sentiment.
Short Liquidations Dominate as Squeeze Fuels Evolve
Liquidation data showed that short liquidations reached $5.85K, while long liquidations remained limited to $296.59, confirming a strong imbalance favoring buying pressure. This disparity indicates that recent price strength has forced bearish positions out of the market, thereby contributing to the upward movement.
While shorts came out under pressure, their selloffs added buying strength, reinforcing the rebound. However, the relatively small number of long liquidations showed that bullish positions have not yet come under stress.
If short exposure continues to unwind, prices could maintain upward pressure, although this effect would likely fade as fewer short positions remain available to liquidate.
Can AERO maintain its breakthrough?
AERO’s rally has aligned with strong accumulation, improving structure, and growing participation, which supports continued upside attempts. However, weak trend strength and increasing leverage could introduce volatility near resistance.
If demand holds above $0.3982, the price could test $0.4406 and potentially move higher, although reduced near-term pressure may slow further gains.
Final summary
- Smart currency accumulation and lower FX supply reduced selling pressure, supporting AERO’s recovery structure.
- Rising open interest and short liquidations suggest active participation, although weak trend strength limits conviction.
