ambcrypto.com 
The Altcoin Season Index fell to 31 and painted a gloomy picture in May as the altcoin market capitalization tried to climb above $1 trillion, but was unable to stay there.
After the early May rally to $82,850, Bitcoin [$BTC] has retraced by nearly 9% in just over two weeks. The correction helped explain the muted sentiment in the altcoin market.
Bitcoin saw a 2.88% drop in the last 24 hours. Aerodrome Finance [$AERO] fell by 6.86% too, displaying relative weakness against the crypto leader.
Here’s how traders and investors can respond to this price move.
$AERO loses control of the $0.45 short-term support zone
In April and the first week of May, $AERO rallied from $0.31 to $0.55. The 77% rally in just over a month might have looked like a remarkable feat on paper. However, like many other altcoins, the DeFi token was only recording a relief rally.
The 1-day chart here showed the bearish swing structure, in place since September 2025. It saw a continuation in late January. The February crash and the subsequent “recovery” was not the beginning of an uptrend, but a correction of the bearish overextended conditions.
In recent weeks, the $0.450area has been critical. It served as resistance in April, was flipped to support in May, and has been retested as resistance once again.
The retest and the sharp rejection, combined with the increasingly bearish short-term $BTC outlook, indicated more downside ahead for $AERO.
Traders’ call to action – Sell
The H4 $AERO structure was bearish after losing the higher low at $0.44, made on 07 May. The bearish impulse move afterwards and the subsequent bounce to the 50% retracement level was met with a bearish reaction at $0.467.
The $0.44-$0.46 resistance zone has been respected. Combined with the bearish price structure across the 1-day and 4-hour timeframes, further downside might be likely for $AERO.
In the coming days, a price drop to $0.384 and $0.345 can be expected. A move above $0.55 is needed to invalidate the bearish idea laid out here.
Final Summary
- Altcoin market sentiment has declined in May, with Bitcoin’s correction below $80K further hurting sentiment.
- $AERO bounced to the $0.44-$0.46 local supply zone and faced rejection, and is likely to continue its move south.
