This week saw Aero through its biggest recovery phase after a painful four months of decline. Breaking out of a critical dynamic resistance, it just marked a new one due to a rejection, and is now poised for a drop.
Just like many other cryptos, Aero located support at $0.28 some weeks back and bounced off after four months of selling. After suffering major losses, a relief set in for the bulls, but they failed to overcome the critical falling trendline, serving as dynamic resistance since last December.
Following a slight drop from this dynamic resistance, the $0.375 level produced support and the price remained calm throughout last week. The trading landscape changed this week as buying volume increased and the price surged steadily until it hit $0.66. An attempt to push above this level has proven abortive and is now looking weak at the moment.
While this surge confirmed a breakout of the four-month resistance, we can expect a slight shift in the trend, although it currently looks poised for a drop due to exhaustion in buying. As shown on the daily chart, the recent candle formations are now becoming choppy due to a rejection. Technically, these rejections indicate signs of weakness in the market.
Losing grip above $0.6 could facilitate a major retest of the resistance line as support before rising back. A further rollback could bring the bears back into action as the supply level increases, leading to a bull trap.
AERO’s Key Levels To Watch
Source: Tradingview
Due to a slight rejection at $0.66, we may see a retest at $0.47. A dip below the $0.375 support could bring us back to the monthly $0.282 low.
If the price increases above the rejected level, we can expect a test at the $0.74 resistance. Higher levels to consider for a test are $1 and $1.2.
Key Resistance Levels: $0.74, $1, $1.2
Key Support Levels: $0.47, $0.375, $0.282
- Spot Price: $0.62
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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