Aerodrome Finance Token Drops 9% But Whales Accumulate 18% More

The Aerodrome Finance token, or AERO, has been under pressure, dropping for the third consecutive day to $0.8920, which is below this week’s high of $0.98. Despite this decline, AERO remains approximately 205% above its lowest point in April this year. This price movement has not deterred smart money investors, who continue to accumulate AERO, purchasing tokens worth $1.3 million in the last seven days, bringing their total holdings to over $16 million.

Whales, investors with vast holdings of a token, have also increased their holdings by 18% in the last 30 days to 9.55 million. This accumulation by both smart money investors and whales suggests a strong belief in the potential future growth of AERO.

Despite the price stagnation, the weekly network volume for Aerodrome, the biggest decentralized exchange on Base, has jumped. Data shows that Aerodrome handled over $4 billion this week, up from $2.6 billion in the previous week. This increase in volume could continue to rise after recent changes to the Coinbase ecosystem, which launched TBA or The Base App as the replacement to the Coinbase Wallet. TBA will combine wallet, trading, payments, social media, messaging, and mini-applications, with Aerodrome being one of the top trading platforms on the application.

Technical analysis of the AERO price shows that it has been in a bull run in the past three months, starting when the token bottomed at $0.2850 in April. The token has jumped above the 50-day and 100-day Exponential Moving Averages, indicating that bulls are in control. Additionally, AERO has formed an ascending channel and moved above the 23.6% retracement level. According to the analyst's forecast, the Aerodrome price will likely continue rising as bulls target the 50% retracement level at $1.3085, which is up by 45% above the current level. However, there is a potential risk to this thesis, as AERO has formed a rising wedge pattern, which may lead to more downside in the near term.