AERO Price Declines on Merger Concerns, May Test $0.74 Support

• AERO’s 24-hour trading volume fell over 53%, indicating heightened selling pressure amid the merger news.

• The merger allocates 94.5% of new tokens to AERO holders and 5.5% to VELO holders based on platform weights.

• Technical indicators like OBV show lower lows, suggesting potential further drops to $0.827 and $0.74 support levels, with data from TradingView.

AERO price drops 6% after Aerodrome-Velodrome merger announcement. Explore reasons, technical analysis, and recovery outlook for this Base network token. Stay informed on DeFi developments.

What is causing the recent AERO price drop?

AERO price has declined sharply due to the merger announcement between Aerodrome Finance on the Base network and Velodrome on Optimism, forming a new entity called Aero. This development, reported on November 13, 2025, has sparked investor concerns over token dilution despite the transparent allocation. Broader market sentiment, influenced by Bitcoin’s price action, has amplified the selling pressure, leading to a 6.36% drop in the last 24 hours according to CoinMarketCap data.

How will the Aerodrome and Velodrome merger impact AERO holders?

The merger, orchestrated by Dromos Labs, will create a unified cross-chain decentralized exchange operating on Base, Optimism, and the OP Superchain, with plans for Ethereum expansion. Existing AERO holders will receive 94.5% of the new token supply, calculated based on each platform’s weight, while VELO holders get 5.5%. This structure aims to consolidate liquidity and enhance efficiency, but initial market reactions have focused on potential short-term disruptions. Data from on-chain analytics indicates increased transaction volumes during the announcement, yet fear of supply changes has driven sales. Experts note that such mergers in DeFi often lead to long-term growth, as seen in past integrations like those on Optimism, where liquidity pools stabilized post-event.

Source: AERO/USD on TradingView

The daily chart for AERO shows a previously bullish structure after surpassing $0.966, but the $1.2 level acted as strong resistance, similar to late September patterns. Although the swing structure indicated upward momentum, recent price action has fully retraced these gains. The On-Balance Volume (OBV) indicator formed a lower low on November 13, 2025, signaling elevated selling volume that could push prices toward the $0.74 support level in the coming sessions.

Can AERO make a recovery?

Source: AERO/USD on TradingView

On the hourly timeframe, the $0.92 region, previously a key demand zone that fueled last week’s rally, has flipped to resistance following the price retracement. This level was retested shortly before the latest data update, confirming the ongoing downtrend. Support at $0.827 and $0.74 now serves as critical levels to watch, as a break below could extend bearish momentum. However, if buying interest returns at these zones, AERO could stabilize and target a rebound toward $1.0. Market analysts from platforms like DeFiLlama highlight that post-merger liquidity enhancements often support recoveries in similar tokens, with historical data showing 20-30% average gains within a month for consolidated DeFi projects.

The broader context includes Bitcoin’s recent fluctuations, which have contributed to altcoin volatility. As of November 13, 2025, the crypto market cap dipped by 2.5%, per CoinMarketCap, exacerbating AERO’s decline. Dromos Labs’ expansion plans across multiple chains position the new Aero DEX for increased interoperability, potentially attracting more users and reversing current pressures over time.

Frequently Asked Questions

What is the token allocation in the AERO-Velodrome merger?

AERO holders will receive 94.5% of the new token supply, while VELO holders get 5.5%, determined by each platform’s weighted contribution. This allocation ensures continuity for existing liquidity providers and is designed to minimize disruption in the DeFi ecosystem.

Will the merger affect AERO’s role on the Base network?

No, the merger strengthens AERO’s position by integrating Velodrome’s features into a cross-chain framework. It will continue operating on Base while expanding to Optimism and beyond, enhancing liquidity and user access without altering core functionalities on the network.

Key Takeaways

• AERO faces short-term pressure: Profit-taking and dilution fears have driven a 6.36% price drop, with trading volume down 53% on November 13, 2025.
• Technical outlook bearish: OBV lower lows and flipped resistance at $0.92 suggest targets at $0.827 and $0.74, based on TradingView analysis.
• Long-term potential positive: The merger could boost interoperability and liquidity, positioning Aero as a leading DEX; monitor for recovery signals at support levels.

Conclusion

The AERO price drop highlights immediate market reactions to the Aerodrome Finance and Velodrome merger, driven by profit-taking, token allocation concerns, and Bitcoin’s influence. While technical indicators point to further downside risks, the strategic expansion across Base, Optimism, and Ethereum underscores strong fundamentals for the new Aero DEX. Investors should track support levels like $0.74 for potential entry points, as DeFi consolidations often yield growth opportunities in the evolving crypto landscape.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely for informational purposes.