ambcrypto.com 
Aerodrome’s DEX (decentralized exchange) native token, $AERO, has rallied 30% in the past three days. Overall, it has reversed all its losses seen in early June and climbed above the 200-day Moving Average (MA, blue line).
From a price perspective, this meant that the higher-time frame chart flipped bullish. In other words, there was a higher chance of the rally extending to the immediate upside target at $0.55.
Source:
$AERO/USDT, TradingView
As such, staying above the $0.40 support zone and the 200-day MA could offer $AERO bulls an extra 25% potential gain.
However, a crack below the key confluence and support zone would invalidate the bullish thesis. In such a scenario, another pullback to the 2026 floor price of $0.3 couldn’t be overruled.
But what’s driving the recent strong rebound?
Mapping $AERO price rally drivers
This week was initially triggered by $BTC’s steady relief 5% bounce to $67K. But more catalysts allowed $AERO to outperform $BTC by nearly 6x over the same period.
First, the DEX announced that its buyback program had hit 190M $AERO. Those tokens are locked across key venues such as Flight School.
This was part of its broader merger with Velodrome to form the ‘Aero,’ one of the largest liquidity layers in the Ethereum ecosystem.
Source: Aerodrome
Over the weekend, Aerodrome also announced its biggest upgrade aimed at increasing revenue streams and adding prediction markets on top of its unified liquidity.
The prediction market feature, dubbed Prediction Allocation, is set to go live next month, right at the peak of the World Cup football season.
Prediction markets could add a new growth catalyst
According to analyst Andy C of The Roll Up, the debut could “re-rate the token higher.”
In a world of 99% uninvestable assets, $AERO stands out as a winner in the new era of our space. Will be a strong launch next month, and I’d anticipate the token re-rate higher leading into it. Feels like a layup of a play to be honest.
Since part of the generated fees from the prediction markets will also be directed to the token buybacks, this could be net positive for $AERO bulls.
Overall, if the broader crypto market recovery extends, $AERO could climb higher amid key bullish catalysts.
Final Summary
- $AERO bulls could push for an extra 25% gain to $0.55 if the broader market recovery extends
- Aerodrome’s upcoming prediction market and Bitcoin’s relief rally fueled the latest June rally.
