Aerodrome Finance (AERO) Faces Bearish Outlook with Potential Drop to $0.474 Support

Aerodrome Finance (AERO) is exhibiting strong bearish momentum across multiple timeframes, with technical analysis pointing toward a potential retest of the $0.474 support level. This comes despite the recent merger of Aerodrome Finance with Velodrome Finance under Dromos Labs, announced on November 13th, which combined the dominant trading protocols on Base and Optimism.

The merger's roadmap, while promising technical developments, has failed to bolster market confidence. A price report from November highlighted a persistent downtrend on higher timeframe charts. Key short-term bearish targets of $0.82 and $0.74 have been achieved, with prices pushed even lower.

On the weekly chart, the structure turned decisively bearish after the weekly session closed below $0.717, extinguishing hopes for a near-term recovery. Analysts now view any price bounce toward or above $1 as a selling opportunity. The weekly Relative Strength Index (RSI) confirms bearish momentum, and the On-Balance Volume (OBV) has been trending lower with successive lower highs and lows since late August, identifying $0.474 as the next significant long-term support.

The daily chart aligns with this pessimistic outlook, also forming a pattern of lower highs and lower lows. For a bullish reversal to begin, AERO would need to rally past the most recent lower high at $0.74. Such a move would require high trading volume and increased speculative interest to solidify, ideally coupled with a supportive move higher in Bitcoin (BTC).

However, the more likely scenario, according to the analysis, involves further losses. Market sentiment remains fearful despite Bitcoin's gains since December 1st. The higher timeframe price action for AERO supports the bearish side, suggesting a retest of the $0.70-$0.75 area could present a shorting opportunity, with a swing target down to the $0.474 weekly low from June.

In summary, both weekly and daily analyses agree AERO is headed for more losses. A sustained bounce in Bitcoin and the wider market in the coming weeks is cited as a necessary condition for a potential bullish trend reversal in AERO's price.