Aerodrome Finance (AERO) is on a strong rise. Since holding $0.45 support four days ago, the altcoin has closed at higher highs.
As a result, tThe altcoin hit a high of $0.60 for the first time since January, then retraced slightly. At the time of writing, AERO was trading at $0.58, up 4.85% on the daily charts, adding to its weekly rise of 22%.
What do the airfield maps suggest?
AERO charts continued to show relative strength, with the uptrend remaining strong. In fact, the altcoin held steady at the $0.45 level as buyers returned in force.
As a result, the altcoin’s Relative Strength Index (RSI) formed a bullish crossover and rose to 67 at the time of writing, indicating that buyers have dominant control over the market. Often, buyer dominance preceded a prolonged upward move.
Even more, the DMI Modified indicator further confirmed the strength of this trend. The modified DMI rose from 6 to 19, indicating that the market has begun to develop significant directional movement.
Taken together, these two momentum indicators suggest that the altcoin’s uptrend is strengthening and the dominant trend may continue.
What motivates AEROs?
The altcoin has shown relative strength, supported by broad market demand. In derivatives trading, for example, AERO’s Open Interest (OI) jumped 10% to $56 million over the past day.
In July, the altcoin’s OI increased by over $13 million, suggesting that significant capital was invested in opening new positions.
In the spot market, a similar trend has occurred, with buyers replacing sellers since July 2. According to Coinalyze data, AERO closed with a positive buy-sell delta over the past three days.
Over this period, the altcoin recorded 18.6 million buying volume compared to 15.8 million selling volume.
Trading flows further confirm this market trend. According to CoinGlass, Spot Netflow fell to -$254,000 from $400,000 the day before, a clear sign that buyers are taking over.
Historically, strong demand in derivatives and spot products has preceded a prolonged market rally. Therefore, the recovery in market demand positions the altcoin for further gains on the price charts.
So, if the current bullish pressure continues, AERO will hold $0.6 and target $0.65 in the short to medium term. On the other hand, if the altcoin fails to close above $0.6, the uptrend will weaken significantly. By doing so, the altcoin could lose the $0.5 support and fall all the way to $0.46, where the current uptrend began.
Final summary
- Aerodrome Finance extended its uptrend, rising 4.85% to $0.6 for the first time since January before falling back to $0.58.
- AERO has seen strong demand in the spot and derivative markets as bulls eye more gains.
