has rallied 39.18% in the past week and was challenging the $2 resistance zone. This region had served as resistance in March and posed an obstacle once more.The market structure in the 1-day timeframe remained firmly bullish. It was flipped bullishly on the 18th of September, when Aerodrome Finance prices broke past the lower high at $0.75. Since then, the structure has not turned bearish.
The bulls struggled to overcome the $1.3-$1.5 resistance zone in October. It took till the second half of November for AERO bulls to blast past this resistance. The breakout has occurred on heightened trading volume. The OBV had fallen in the first of November, but was on its route to recovery over the past ten days. It was above the local highs from the past two months as well, a sign of firm buying pressure.At press time, the $2 psychological resistance had confluence with a bearish order block from March. Hence, Aerodrome Finance buyers could have a tough time pushing beyond this resistance.The liquidation heatmap of the past week showed that there was a sizeable cluster of liquidity around $1.4.
Interestingly, this band of liquidity has a considerable overlap with the bullish breaker block plotted on the daily timeframe at the $1.5 zone. Hence, a revisit to this zone is possible.The lower timeframe liquidation levels showed that $1.8 and $2 are the closest magnetic zones that Aerodrome Finance prices could gravitate to.It is unclear how deep a price dip would go. AERO has strong demand zones around $1.5 and below. A price drop below $1.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinionAkashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis.