AERO's price surge today: Investigating the factors fueling a 9% increase
In the world of decentralised finance (DeFi), Aerodrome Finance, a DEX on Ethereum L2 Base, has seen a 9% increase on September 15, 2022. This surge was triggered by the Base announcement of a Solana bridge to improve liquidity between the two ecosystems.
As the native and one of the leading DEXes on Base, AERO is expected to capture most of the projected liquidity, with the potential for it to soar and reclaim the $1.3 support level. If this happens, it could raise the odds of AERO eyeing the upper channel around $1.6, potentially resulting in a 30% gain.
However, there is some caution ahead of the Fed rate cut decision for AERO. The 25 bps Fed rate cut is already priced in, so the AERO price reaction could be measured. It's worth noting that there are no specific publicly available details in the recent three-day period before the Federal Reserve rate decision indicating which institutions reduced AERO long positions.
The upswing raised AERO's price from $1.15 to $1.37, but part of the gains were erased as of press time. The liquidation heatmap on the Bybit exchange supports a move lower to $1 for AERO. There are other pockets of liquidity for AERO at $1.4 and $1.6, providing potential support should the price drop.
Binance's top traders added long positions in the past three days, but trimmed exposure ahead of the Fed rate decision. Interestingly, the long positions of these traders slipped from over 68% to 65% in the 24 hours.
Base has also mentioned exploring a token to support its builders, but no new facts were provided about this exploration in the recent news.
Despite the potential gains, it's important to remember that investing in cryptocurrencies carries risks, and it's always advisable to do thorough research and consider seeking financial advice before making any investment decisions.
As the situation develops, we will continue to monitor the AERO price and provide updates on any significant developments. Stay tuned for more news on the world of DeFi.
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