Phemex Analysis #105: Is AERO Going to the Moon?!Aerodrome Finance (AERO), the liquidity hub of the Base network, has been one of the hottest DeFi tokens this summer. Since early August, AERO’s price has surged from $0.75 on August 7 to a peak of $1.46 on August 17, before pulling back to around $1.25 today. This rally has fueled speculation that AERO may be preparing for its next big move.
Beyond its price action, AERO continues to impress with strong fundamentals. Its vote-locked governance (veAERO) gives holders influence over emissions and fee rewards, while its position as the leading AMM on Base offers significant ecosystem upside. With emissions tapering, AERO’s supply growth is slowing, adding a deflationary edge to its tokenomics.
With solid fundamentals and price consolidating just under resistance, AERO is at a pivotal point. Let’s explore the possible scenarios ahead.
Possible Scenarios
1. Bullish Breakout: Targeting $1.60+
If AERO stabilizes and breaks $1.46 with strong volume, bullish momentum could extend toward $1.60–$2.00.
Pro Tips:
Enter on a confirmed breakout close with volume.
Take partial profits at $1.60 & $2.00.
Use stops just below the consolidation low.
2. Choppy Consolidation at $1.20–$1.46
Price may continue to range between $1.20 and $1.46 as traders digest recent gains.
Pro Tips:
Trade the range—buy near $1.20, sell near $1.46.
Avoid chasing mid-range entries.
Watch for volume spikes to anticipate breakout direction.
3. Bearish Retracement Toward $1.00
If AERO fails to hold $1.20, momentum could turn bearish, with $1.00 as the next key accumulation zone.
Pro Tips:
Exit or reduce positions if $1.20 breaks on heavy volume.
Look for stabilization and wick recoveries before re-entering.
Long-term bulls may accumulate in the $0.95–$1.00 range, or at the strong $0.75 support level.
Conclusion
AERO’s rally from $0.75 to $1.46 reflects its growing strength both technically and fundamentally. With Base adoption rising, strong governance mechanics, and a deflationary supply curve, AERO remains one of the most compelling DeFi tokens to watch.
The question is whether this consolidation will lead to another leg higher—or if a reset back toward $1.00 is needed first. Either way, disciplined traders with clear strategies are well-positioned to capitalize.
