Aave The decentralized lender’s governance token saw sharp declines through Thursday, falling 8% to $208. From Monday’s high of $248, the token lost over 16%.
DeFi token bluechip made consecutive lower highs and lower lows, establishing clear bearish momentum as its peers advanced, CoinDesk Research’s market insight tool showed. Trading activity rose 40% above seven-day averages, indicating active revaluation rather than silent drift.
AAVE underperformed the CoinDesk 5 Index (CD5), which fell nearly 4%, underscoring the broad-based weakness.
The correction came despite Aave posting strong growth in its institutional real-world asset lending arm, Horizon. Data shows that the market has grown by over $450 million since its launch about two months ago.
What traders should keep in mind
Key technical levels indicate a potential breakout risk for AAVE, CoinDesk Research’s market insight tool suggested.
- Support/Resistance: The critical support at $211.00 failed, while the $235 level limited previous advances forming resistance.
- Volume Analysis: Three volume spikes at $228, $219 and $213 confirmed selling waves.
- Chart Patterns: The lower highs and lower lows established a bearish trend in a range of $26.88, representing an overall price drop of 11.4%.
- Targets and Risks: Failed recovery at $212.70 triggers deeper pullback.
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and were reviewed by our editorial team to ensure accuracy and compliance. our standards. For more information, see CoinDesk’s full AI policy.
