- AERO surges past $1.07 after Coinbase DEX integration boosts Base ecosystem.
- Technical indicators and derivatives activity point to strong bullish momentum for AERO.
- The next resistance is at $1.12, with potential upside toward $1.20.
AERO token by Aerodrome Finance has registered gains of over 10% after passing the $1.07 mark to aim at its next resistance level, marked at the $1.12 mark. The price represents a rise of 25% in the past 24 hours, after a buying frenzy and huge integration news by Coinbase.
Integration with Coinbase Influences Surge
Coinbase has introduced the feature of buying and selling via an in-app decentralized exchange (DEX). It also includes support for the Base blockchain. The new change will enable millions of those using Coinbase to buy and sell assets built on Base.
Aerodrome Finance is the most prominent DEX protocol on the Base platform. So, it will get the largest exposure compared to others. The activity within the Base ecosystem has already been boosted following the launch. AERO is currently outperforming other coins like Chainlink.
The Base tokens’ market cap appreciated by 5%, compared to the 1.28% gain in the wider crypto market, with AERO among the top gainers.
AERO above VWAP, $1.125 Target in Reach
Technicals from the TradingView chart show that the AERO price has exceeded multiple important Fibonacci retracement levels and extensions. The token surpassed the 2.618 level of the Fib. at about $0.97, and it later surpassed the 3.618 level at $1.066.
The next bullish target stands at the 4.236 extension of $1.125. The VWAP readings indicate that the average prices during the session were at $1.0459, $1.0525, and $1.0393, respectively.
This implies that the price of AERO is now high compared to the recent volume-weighted price. It is a bullish indicator that there is a long momentum and buying pressure. The spot trading volume has also increased, where Coinbase indicates 5.26 million in volume in its most recent session.
Fib. and VAWP. Source: TradingView
Also Read | Aerodrome Finance (AERO) Eyes $1.34 Breakout as Bullish Momentum
AERO Breakout Gets Stronger
This price is an increase from lows at around $0.71 earlier this month, which represents a sharp recovery in the short term. In the 4-hour chart, volume is 5.26 million, signifying that a more substantial trading activity occurred during the breakout.
MACD indicator is still bullish with the MACD line at 0.07078 above the signal line at 0.04274.RSI is overbought at 77.65, and there may be short-term profit-taking. This would result in a slowdown in the momentum.
AERO reached $1.080 at the end of the intraday session. However, it has decreased slightly since reaching that high. But it is still above various resistance levels.
MACD and RSI. Source: TradingView
Aero Derivatives Market Affirms Upward Momentum
Coinglass data indicates intense growth in activity within AERO’s derivatives markets. The traded volume on futures has shown a 642.85% growth in the past 24 hours to stand at $507.75 million. Open interest increased 46.66% to $83.58 million.
It is an indication of more speculative positioning and liquidity in this market. The increase in open interest and volume signifies much trader conviction. It also means that there is a possibility of higher future volatility based on the breakout.
Source: Coinglass
AERO’s current valuation is at almost $942 million, which represents a significant portion of the overall valuation of the Base ecosystem of $88 billion. As revealed by data from CoinMarketCap, the token has gained 42% in terms of price in the last 7 days.
Source: CoinMarketCap
However, that cannot be compared to its price in December last year. At that time, its price was $2.33. Hence, the token might realize greater profits as long as the factors behind the upward surge are maintained.
The coin could rise to $1.20 and beyond, even though its short-term target is $1.12. However, it will be important for the support to hold above $1.05 and $1.07 to continue the bullish trend. The positive fundamentals and Coinbase integration, combined with bullish technicals, indicate that the coin has the potential to rise in the short term.
Also Read | Ethereum’s Weekly Breakout Signals Bullish Surge, Eyes $6,200
