AAVE - Fell 1.69% Over the Past 24 Hours as Market Fluctuations and Changes in the DeFi Sector Persist

On October 30, 2025,

(AAVE), the primary token for the decentralized lending platform Aave, dropped by 1.69% over the last day, closing at $226.51. Over the previous week, AAVE has slipped 1.14%, while its value has decreased by 18.47% in the past month and 27.56% over the last year. These price changes have brought renewed focus to Aave’s position within the DeFi sector, which has experienced varied results toward the end of 2025.

Although competition is increasing, Aave continues to serve as a cornerstone in the DeFi ecosystem. However, its token has underperformed in recent months, largely due to broader market corrections and changing investor attitudes. The downward movement in Aave’s price has been echoed by other DeFi assets, signaling a sector-wide reassessment of risk and reward.

In late October 2025, the overall market environment was marked by major earnings reports from industries such as technology, healthcare, and manufacturing. While these announcements did not directly affect Aave, they contributed to the heightened volatility that has weighed on DeFi tokens. Strong earnings from companies like AerCap and Aptiv demonstrated the resilience of traditional markets, which has led some investors to shift away from higher-risk assets like DeFi tokens.

Technical analysis for Aave indicates a bearish outlook in the short term, with the token trading below important support thresholds. The RSI is currently in oversold territory, while the MACD histogram reflects only mild bullish signals. Both traders and investors are monitoring closely for indications of either a reversal or a continuation of the current downtrend.

Backtest Hypothesis

To assess possible investment approaches for Aave in the current market, a backtesting strategy has been suggested that reviews price movements following significant declines. The idea is to pinpoint days when Aave drops by 10% or more at closing and then study how the price behaves over a set holding period.

By analyzing historical data from 2022 through 2025, the backtest would examine Aave’s price action after such sharp declines. The analysis could use a holding window of 1 to 20 trading days to observe whether there are short-term recoveries or continued losses. If a 20-day holding period is chosen, the goal would be to see if Aave typically rebounds after steep corrections or if it tends to keep falling.

Risk management measures, such as a 5% stop-loss or an 8% take-profit, could be used to limit potential losses. The test would rely on closing prices and could later incorporate volume and sentiment metrics. This methodology could also be applied to other DeFi tokens to compare how they perform after periods of high volatility.