AERO Token Faces Short-Term Pressure as Smart Money and Whales Increase Holdings

Aerodrome Finance (AERO) Struggles, But Institutional Buyers Remain Confident

Despite recent downward momentum, the Aerodrome Finance (AERO) token is attracting increased attention from both smart money investors and whales, signaling optimism for a potential rebound. Over the past three days, AERO’s price has fallen by 4.23%, dipping to $0.8920 from its weekly high of $0.98. Nevertheless, the token still trades an impressive 205% above its April lows.

 

Smart Money and Whale Activity Support AERO

On-chain analytics indicate substantial accumulation by sophisticated market participants. In the past week alone, smart money investors have purchased AERO tokens worth $1.3 million, pushing their collective holdings above $16 million. Whale wallets—large holders often seen as bellwethers for major price moves—have likewise increased their holdings by 18% over the last 30 days, now controlling 9.55 million tokens.

Smart money investors are buying AERO | Source: Nansen

This wave of accumulation comes even as short-term price action remains bearish, highlighting that industry insiders see long-term potential in Aerodrome Finance and its native token.

 

Transaction Volumes Point to Growing Ecosystem

Underlying network fundamentals for Aerodrome Finance remain robust. Recent reports from DeFi Llama show that Aerodrome—the largest decentralized exchange (DEX) on the Base network—processed more than $4 billion in weekly volume, up sharply from $2.6 billion the previous week. This surge underscores the growing adoption of the Base blockchain for DeFi trading and liquidity provision.

Further fueling optimism, Coinbase’s recent launch of The Base App (TBA), an all-in-one decentralized app integrating wallet, trading, payments, social, and messaging functionalities, is expected to drive even greater volumes through Aerodrome, cementing its status as a leading DEX within the expanding ecosystem.

 

AERO Price Analysis: Mixed Technical Signals

Technically, AERO is in a macro uptrend that began in April when the price bottomed at $0.2850. The token’s chart indicates a rally well above its 50-day and 100-day Exponential Moving Averages, an indicator of bullish control. Additionally, AERO has been trading within an ascending channel and pushed past the key 23.6% Fibonacci retracement.

Bulls are now eyeing the 50% retracement level at $1.3085, implying a potential 45% upside from current prices. However, traders may want to remain cautious: the formation of a rising wedge on the daily chart presents a risk of short-term downside.

 

Outlook: Is a Breakout Imminent for AERO?

With strong accumulation by smart money and whales, increased DEX trading volumes, and major ecosystem developments, AERO appears poised for further upside over the mid to long term. Nonetheless, traders should monitor short-term technical risks while keeping an eye on inflows and broader blockchain sector trends.