Abe the decentralized finance company’s governance token posted a sharp decline by Thursday, dropping 8% to $208. The token has fallen more than 16% since Monday’s high of $248.
According to CoinDesk Research’s market insight tool, the DeFi bluechip token has made consecutive highs and lows, establishing clear bearish momentum as its peers move higher. Trading activity surged 40% above the seven-day average, suggesting aggressive price corrections rather than quiet fluctuations.
AAVE underperformed the CoinDesk 5 Index (CD5), which fell nearly 4%, highlighting broader weakness.
The correction occurred even as Aave recorded strong growth in its institutional real asset lending arm Horizon. Data shows the market has grown by more than $450 million since its launch about two months ago.
What traders should pay attention to
CoinDesk Research’s market insight tool suggested that key technology levels indicate potential failure risk for AAVE.
- Support/Resistance: The important $211.00 support has failed, but the previous upper limit level at $235 has formed resistance.
- Volume Analysis: Three volume spikes at $228, $219, and $213 confirmed a wave of selling.
- Chart Pattern: Lower highs and lower lows establish a bearish trend in the $26.88 range representing an overall price decline of 11.4%
- Objectives and Risks: Failure to recover at $212.70 will trigger 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’s complete AI policy.
