AERO continues to decline after retesting all-time high in December but gets close to being oversold. Will we see a reversal soon?
Share
Key Takeaways
The price has completed a 5-wave bullish Elliott Wave structure in December.
AERO,t is in a corrective ABC pattern after the fifth wave’s peak.
RSI shows declining momentum, indicating possible oversold conditions ahead.
Aerodrome (AERO) has entered a corrective phase after completing a bullish 5-wave Elliott Wave pattern in December.
The current market structure suggests a consolidation within a descending channel, as buyers and sellers battle for control.
With momentum slowing, key Fibonacci retracement levels indicate potential support and resistance zones that could dictate the next directional move for AERO.
AERO’s price peaked at $2.33 on Dec. 12, completing a five-wave bullish impulse.
However, after briefly testing this level on Dec. 7, the price faced significant downward pressure.
This correction has seen the price fall 44% from its peak, hitting a low of $1.30 on Jan. 1, 2025.
AEROUSD is still in a downtrend but nearing the oversold zone | Credit: Nikola Lazic/TradingView
Applying Fibonacci retracement levels to this recent price movement reveals that AERO breached the 0.5 retracement level, suggesting potential consolidation or support around these levels before any further movement.
The RSI on the daily chart shows a decline in momentum, a sign that the bullish momentum that drove AERO’s price higher earlier in December may be waning.
With the RSI approaching oversold territory, further price dips could trigger buying interest, especially at lower Fibonacci levels.
If AERO continues to slide, support levels at the 0.618 Fibonacci retracement around $1.10, or the 0.786 level at $0.94, may provide areas of interest for potential buyers.
These levels could act as strong support zones, presenting accumulation opportunities for those anticipating a longer-term reversal.
AERO Price Prediction
The hourly chart suggests that AERO is currently in the middle of a corrective ABC pattern, with wave (iii) in progress within the C wave.
This suggests the price could continue to dip before a reversal. The price is likely to test the 0.5 retracement at $1.21 before seeing any potential reversal.
AEROUSD one more leg down likely before an upturn | Credit: Nikola Lazic/TradingView
If this level fails to hold, the price could dip further, with key support levels at $1.10 (0.618 Fibonacci) and $0.94 (0.786 Fibonacci).
A breakout above the descending channel’s upper boundary near $1.32 would signal the end of the corrective phase and a possible return to an uptrend, potentially targeting previous highs.
Key Levels to Watch
Immediate Support: 0.5 Fibonacci retracement at $1.21.
Next Support: 0.618 Fibonacci retracement at $1.10.
Major Support: 0.786 Fibonacci retracement at $0.94.
Resistance for Bullish Breakout: Descending channel’s upper boundary around $1.32.
Confirmation of Reversal: 0.236 Fibonacci retracement at $1.46.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
