AERO Faces Bull Trap Risk at $1.45 Supply Zone
Technical analysis of Aerodrome Finance (AERO) reveals mixed signals that warrant caution. AERO’s price rose 0.6% alongside an 8.28% uptick in Open Interest, indicating bullish momentum. However, a deeply negative Funding Rate amid rising prices and a sudden spot CVD surge suggest speculative short positions are building. On the daily chart, AERO cleared early-2025 resistance, and DMI indicators (+DI and ADX above 20) confirm a strong uptrend, though buying pressure (A/D) and the MFI have cooled near the $1.4 supply zone. A liquidation heatmap shows liquidity swept above $1.4, making a retracement to $1.2–$1.1 likely. Traders should view dips to $1.1–$1.2 as buying opportunities, while a swift breakout past $1.45 could be a bull trap driven by a liquidity hunt. Position management is essential for swing traders and long-term investors.
Neutral
The report highlights both bullish momentum—evidenced by rising Open Interest, price gains, and strong DMI readings—and bearish risk signals, such as a negative Funding Rate, cooled buying pressure at the $1.4 supply zone, and liquidity sweeps above that level. Historically, altcoins that clear key resistance only to see funding fees turn negative often experience swift retracements or false breakouts. In the short term, AERO may rally, but traders should guard against a liquidity-driven bull trap above $1.45. Over the longer term, dips to $1.1–$1.2 could offer stable entry points, suggesting a neutral overall impact.