Wow the decentralized lender’s benchmark, showed sharp declines through Thursday, falling 8% to $208. Since Monday’s high of $248, the token fell over 16%.
The DeFi bluechip token carved out consecutive lower highs and lower lows, establishing clear bearish momentum as peers advanced, CoinDesk Research’s market insight tool showed. Trading activity rose 40% above its seven-day average, signaling active repricing rather than quiet activity.
AAVE underperformed the CoinDesk 5 Index (CD5), which fell nearly 4%, underscoring the broad weakness.
The correction came despite Aave seeing strong growth in its real-world institutional asset lending arm Horizon. The marketplace grew over $450 million since launching about two months ago, data shows.
What traders should see
Key technical levels signal a potential breakout risk for AAVE, CoinDesk Research’s market insight tool suggested.
- Support/Resistance: Critical support at $211.00 failed, while the $235 level capped earlier advances that formed resistance.
- Volume Analysis: Three volume spikes at $228, $219 and $213 confirmed selling waves.
- Chart Patterns: Lower highs and lower lows established a bearish trend in a range of $26.88, representing a total price decline of 11.4%
- Targets and Risk: Failed recovery at $212.70 triggers a deeper pullback.
Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and compliance with our standards. For more information, see CoinDesk’s full AI policy.
