Aave the decentralized lender’s governance token, saw sharp declines through Thursday, falling 8% to $208. Since Monday’s high of $248, the token has lost over 16%.
DeFi token bluechip carved out consecutive lower highs and lower lows, establishing clear bearish momentum as its peers advanced, CoinDesk Research’s market analysis tool showed. Trading activity jumped 40% above seven-day averages, signaling an active revaluation rather than a quiet drift.
AAVE underperformed the CoinDesk 5 Index (CD5), which fell nearly 4%, highlighting widespread weakness.
The correction occurred despite Aave posting strong growth in its institutional real-world asset lending arm, Horizon. The market has surpassed $450 million since its launch about two months ago, data shows.
What traders should watch out for
Key technical levels signal potential breakdown risk for AAVE, suggests CoinDesk Research’s market analysis tool.
- Support/Resistance: The critical support at $211.00 failed, while the $235 level capped earlier advances forming resistance.
- Volume Analysis: Three volume spikes at $228, $219, and $213 confirmed selling waves.
- Chart Patterns: Lower highs and lower lows established a downtrend in the $26.88 range, representing an overall price decline of 11.4%.
- Targets and Risks: Failure to rally to $212.70 leads to a deeper pullback.
Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial team to ensure accuracy and compliance. our standards. For more information, see CoinDesk Comprehensive AI Policy.
