AERO Token Crashes 7% as Bears Take Control – What’s Next?

• Aerodrome Finance (AERO) price down by 7% showcasing bearish momentum.
• AERO price break below key moving averages showcasing bearish dominance on the technical chart.

Aerodrome Finance (AERO) is witnessing extreme bearish pressure on the daily technical chart. The technical indicators are also showing worrying signs on Aerodrome Finance , with several of them indicating a bearish future for the altcoin in the short term. The price action of the token has turned very weak, and it has fallen below the important moving average levels that were before acting as support. As per CMC data, it is down by 7% and the price is currently trading at $0.7024.

The most important is that AERO is breaking down below the 50-day exponential moving average (EMA) at $0.70345 and the 200-day EMA at 0.76048. This two-moving average violation is especially interesting because it shows a change in both the short-term and the long-term momentum, which is now bearish. These are the important levels the price is trading below now and the moving averages have now become the immediate resistance barriers that the bulls need to break to take control again.

Relative Strength Index (RSI) supports the bearish mood and is at 45.77 and is moving downwards. This reading indicates that there is selling pressure that is accumulating, and the indicator is approaching oversold. The RSI is on a downward trend which shows that bears are dominating the trend currently.

What’s Next For Aerodrome Finance (AERO) Price?

Source: Tradingview

The Moving Average Convergence Divergence (MACD) is another indicator that gives more evidence of the bearish sentiment. The MACD and signal line are heading into the negative zone, and a bearish crossover is noticed, and the histogram bars are red and growing downwards. Such a combination indicates that selling momentum is gaining pace and that the existing downward trend will continue in the near future.

The social sentiment analysis sends mixed signals as the thresholds indicate neutral to slightly negative readings, which means that the market players are still skeptical about the future of AERO. The sentiment figures indicate that the retail interest has declined after the recent price drop.

On a support and resistance view, AERO has an immediate resistance at the previous support of $0.70345 and $0.76048. These levels, which were once price floors, are now major obstacles to any recovery effort. On the other side, the major support levels are seen at $0.50 and $0.30, making them potential buying points when the current sell-off persists.

The technical image indicates that AERO is still exposed to additional downside pressure. Traders should be careful until more definite signs of reversal appear in the form of better momentum indicators and recapture of major moving average lines.

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