Top Three Reasons Behind AERO Crypto’s Price Rally Today

Aerodrome Finance ranks as one of the largest decentralised exchanges on the Base network. Coinbase incubated it to drive innovation and liquidity in DeFi. AERO climbed by more than 10% in the past 24 hours as trading volume grew.

The altcoin led most of the DEX tokens, with fundamentals, activity, and technical shift at the center of this flip. However, the broader market rebound invited another perspective that this could be just another exit pump.

AERO crypto remained in a bearish territory, but there were signs of a potential market shift. The question remains whether the crypto will continue to rally or if bears will maintain their dominance.

AERO Rallies by Double Digits

AERO crypto surged with a double-digit rally. The broader market reversed after cascading liquidations the night before. The total market cap reclaimed the $2 trillion mark as the Fear & Greed Index rose to 22 from extreme levels.

The altcoin enjoyed user interaction as trading activity skyrocketed. More than $500 million of shorts were liquidated across the entire crypto market. The trading volume of Aerodrome Finance was more than $200 billion since the beginning of the year.

The 18% rally from $0.5791 to a high of $0.6873 paused upon striking this zone. The move was a recovery from the crash that saw a lot of long positions get liquidated. The instant reaction across the entire market was a statement that bulls were aware of the big discount.

The daily chart was giving a more convincing bullish scenario. However, the spike also could be an exit pump strategy by the smart money.

AERO Price Prediction: Is Another Pump Coming or Exit Liquidity?

The daily chart showed that AERO was bouncing off the 0.786 Fibonacci Retracement level. That’s a historical area of interest for bulls. However, the AERO crypto price was still trading in a bear market structure. This is despite the early hints of a bull resurgence.

The CMF was rebounding from the negative territory but had yet to turn the figures into positive inflows. The momentum indicators were repeating the same pattern. This was an indication that the market was yet to shift.

That made the pump suspicious to traders. Historically, bear markets have exit pumps, which smart money uses to lure novice traders as liquidity for exit.

Still, the market could have made its first sign of reversal. If that were the case, AERO could have begun its trajectory toward $1.60. That does not rule out the potential of another decline in price. What do the fundamentals and activity say?

Fundamentals and On-Chain Activity Fueling AERO Rally

Fundamentals supported the spike in chain activity that Aerodrome Finance witnessed. The team bought back about $542K worth of AERO on December 2nd. It was the largest buyback since the start of November, and it contributed to the rally that followed the next day.

The spot volume also rose to $492 million during the day. Moreover, the Total Value Locked (TVL) spiked to $408 million, though it started retracing after the price hit the high.

The number of transactions was 776.6K when writing, indicating increased network activity. This meant that demand was rising, helping in pushing the price higher.

AERO climbed on a lower‑timeframe technical shift, boosted by rising network activity and a buyback program. However, this does not guarantee that the price will continue to rise in the future.