Aerodrome Finance’s AERO Drops 1.5% Despite Whale Accumulation and Network Growth

Aerodrome Finance’s native token, AERO, has experienced a decline in price, falling for the third consecutive day. The token dropped by 1.5% to $0.8920, slipping from this week’s high of $0.98. Despite this pullback, AERO remains over 200% higher than its April low of $0.2850.

Despite the price dip, smart money investors and whales have been actively accumulating AERO. Smart money wallets added $1.3 million worth of AERO in the past week, bringing their total holdings to over $16 million. Whales, categorized by their large holdings, have also increased their positions, with their total AERO holdings rising by 18% in the past 30 days, reaching 9.55 million tokens.

Increased network activity has added further momentum to AERO. Aerodrome handled over $4 billion in trading volume this week, marking a jump from $2.6 billion in the previous week. This reinforces its position as a leading decentralized exchange on the Base ecosystem.

Coinbase's recent announcement to roll out The Base App (TBA), a multi-functional platform replacing its wallet, is expected to further support Aerodrome’s integration. TBA will feature wallet, trading, messaging, and app services, with Aerodrome positioned as one of its main trading platforms.

Technical indicators show continued bullish sentiment in AERO’s recent trend. The token remains above both its 50-day and 100-day Exponential Moving Averages. It is also trading within an ascending channel and above the 23.6% Fibonacci retracement level. If upward momentum holds, the next key target could be the 50% retracement level at $1.3085, a potential 45% gain from current prices. However, a rising wedge pattern has emerged, which could point to a near-term decline if it breaks lower.