Foreign media reports that Aerodrome Finance's token AERO remained above $0.50 during the pullback, but trading volume and derivatives open interest declined simultaneously, indicating that this decline was more of a wait-and-see approach by investors than a concentrated increase in short positions. The market's focus now remains on whether the support level around $0.505 can continue to absorb selling pressure.

Trading volume and open interest declined.

AERO fell 11.81% in the past day, with trading volume decreasing by 15.97% to $51.31 million. The article argues that the price decline accompanied by a contraction in trading activity usually indicates insufficient new buying interest and a cautious short-term market sentiment.

Derivatives data also shows a similar shift. AERO open interest fell 15.13% to $55.24 million, indicating that traders were more inclined to close positions during pullbacks rather than establish new ones. This appears to be a deliberate cooling of leveraged funds.

Large spot orders are still in place.

Despite the overall decline in participation, large orders in the spot market have not completely disappeared. The article mentions that the average order size indicator shows that smaller whales are still trading around current price levels.

This divergence means that while derivatives traders are reducing their risk exposure, some larger funds are continuing to invest in the spot market. However, this single indicator is insufficient to confirm that a sustained accumulation has occurred; a rebound in trading volume and a renewed strengthening of prices are still needed.

$0.505 becomes a key level

From a daily chart perspective, AERO's overall upward trend remains intact after its rapid rebound from around $0.30. The current price is still above the key support zone of $0.505, but selling pressure has repeatedly appeared in the $0.55 to $0.57 area above.

The article notes that the Relative Strength Index (RSI) is at 63.67, still above neutral levels, indicating that buyers remain dominant in larger-scale price movements. However, the indicator has retreated from recent highs, suggesting a slowdown in upward momentum. If the $0.505 level is breached, the market may turn its attention to the demand zone around $0.427.