Aave , the governance token of the decentralized lender, experienced significant declines through Thursday, falling by 8% to $208. Since reaching $248 on Monday, the token has lost over 16%.
The DeFi blue-chip token has been forming consecutive lower highs and lower lows, clearly demonstrating bearish momentum while its peers have advanced, according to CoinDesk Research’s market insight tool. Trading volume surged 40% above the seven-day average, indicating active repricing rather than a quiet market drift.
AAVE underperformed the CoinDesk 5 Index (CD5), which declined nearly 4%, highlighting broader market weakness.
This correction occurred despite Aave’s strong growth in its institutional real-world asset lending platform, Horizon, which has surpassed $450 million since its launch about two months ago, data indicates.
What Traders Should Watch
Key technical indicators point to a potential breakdown risk for AAVE, as suggested by CoinDesk Research’s market insight tool.
- Support/Resistance: The crucial $211.00 support level failed, while the $235 level has acted as resistance to earlier advances.
- Volume Analysis: Spikes in volume at $228, $219, and $213 confirmed recent selling pressures.
- Chart Patterns: The formation of lower highs and lower lows has established a bearish trend across a $26.88 range, reflecting an 11.4% overall price decline.
- Targets & Risk: A failed recovery at $212.70 indicates a potential for further pullbacks.
Disclaimer: Parts of this article were generated with assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
