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AERO Price Weakens After Aero–Velodrome Merger Reveal
Aerodrome Finance (AERO) on Base network and Velodrome (VELO) on Optimism announced plans to merge into a new cross-chain decentralized exchange named Aero. Following the Wednesday, November 13 announcement, AERO token declined 6.36% while trading volume plummeted by 53%.
Merger Details and Token Distribution Structure
Dromos Labs, the company operating both liquidity protocols, will run the new structure across Base, Optimism, and OP Superchain. The platform plans to expand operations to the Ethereum network in subsequent phases.
New token distribution will be determined based on each platform’s weight. Existing AERO holders will receive 94.5% of the new token supply. VELO holders will get 5.5% of the allocation. Despite this transparent and coordinated DeFi merger, AERO’s price has faced significant pressure in recent days.
According to CoinMarketCap data, the 24-hour decline coincided with daily trading volume being cut in half. Selling pressure stems from dilution fears and profit-taking behavior among investors. Additionally, Bitcoin’s recent price action triggered market-wide fear that also impacted AERO’s performance.
Technical Indicators Signal Weakness
The daily chart showed a bullish structure forming after AERO moved above the $0.966 level. The $1.2 level emerged as a stiff resistance zone, similar to its behavior at the end of September. While the swing structure pointed to bullishness, this move has been completely retraced.
The OBV (On-Balance Volume) indicator formed a lower low on November 13. This suggests selling volume in recent days has been elevated. Consequently, AERO faces the possibility of dropping toward the $0.74 level.
The $0.92 region previously served as a demand zone that launched last week’s AERO rally. However, this zone has now flipped to a supply area and become a resistance point. This resistance was retested in the hours before press time, with the downtrend continuing on the 1-hour timeframe.
Where Are the Next Targets?
Technical analysis indicates the next price targets for AERO are $0.827 and $0.74. These levels stand out as critical support points that could be tested if current selling pressure persists.
The token continues facing pressure due to uncertainty brought by the merger news and negative sentiment across the broader crypto market. Weakness in Bitcoin and general risk-off sentiment amplify selling pressure on altcoins.
What’s Needed for Recovery?
For AERO to show recovery signs, it first needs to break above the $0.92 resistance and maintain stability above this level. Otherwise, continued selling pressure and movement toward identified support levels appears likely.
Clarification of merger process details and improvement in market conditions stand out as potential catalysts for AERO. However, in the near term, technical indicators and market sentiment continue signaling downward direction. Investors should closely monitor identified critical levels in the coming days to gauge potential price movements.
