Aerodrome Finance’s native token AERO has emerged as today’s top gainer, securing a 5% jump as broader crypto market activity stalls.
On-chain data reveals that demand for the token has climbed, signaling heightened participation from both spot buyers and derivatives traders. This suggests the token could extend its gains over the next few trading sessions. But, how high can AERO go?
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AERO Rally Gains Conviction With Volume Spike and Record Open Interest
AERO’s 5% price uptick has been accompanied by a notable rise in its daily trading volume, which has exceeded $261 million after climbing by more than 552% in the past 24 hours. This surge in trading volume indicates robust market interest, reinforcing the token’s upward price movement.
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When an asset’s price and trading volume surge simultaneously, it signals that the rally is backed by strong conviction rather than short-term speculation. This combination is crucial for sustaining momentum, as it attracts even more traders to join in.
The high volume indicates that a larger number of participants are actively trading the token, validating AERO’s upward price movement and reducing the likelihood of sudden pullbacks. This landscape can create an unparalleled opportunity for traders who are looking for promising trends.
Excitingly, AERO’s futures open interest has also soared to an all-time high, highlighting an influx of activity from derivatives traders. According to Coinglass data, open interest currently sits at $123 million, marking a significant 21% increase over the past 24 hours.
Open interest refers to the total number of outstanding futures or options contracts that have not yet been settled. When open interest rises alongside price gains, it signals that new money is flowing into the market, reflecting trader confidence in the trend’s sustainability. This momentum is vital for the health of any rally, particularly in the highly volatile crypto space.
A surge in open interest also points to heightened speculation and liquidity in the derivatives market, which can amplify price momentum depending on market sentiment. For AERO, the concurrent uptick in both price and open interest suggests that traders are not passively holding positions, but actively building exposure in anticipation of further upside.
AERO Bulls Eye $1.30 Breakout, But $1.06 Support Remains Critical
With demand intensifying in both spot and futures markets, AERO appears well-placed to extend its current momentum. Should buy-side demand grow sustainably, the token could break into the $1.30 price region and attempt to stabilize above it. This potential breakout could significantly boost trader sentiment and interest.
If this scenario plays out, AERO could breach the resistance at $1.3066 and move toward $1.5486, depending on a sustained accumulation pattern. Such upward movements often attract even more traders eager to capitalize on the bullish trend.
However, if profit-taking resumes or the momentum begins to wane, AERO could fall to $1.0674. This level has become increasingly critical as it marks a potential support area; should it hold, traders may see it as a buying opportunity for the next wave of increases.