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AAVE Drops 8% Amid Crypto Weakness Despite RWA DeFi Momentum

AAVE Drops 8% Amid Crypto Weakness Despite RWA DeFi Momentum

CryptoNewsNetCryptoNewsNet2025/10/30 22:36
By:coindesk.com

Aave AAVE$211.88, the governance token of the decentralized lender, posted sharp declines through Thursday, dropping 8% to $208. Since Monday's $248 high, the token shed over 16%.

The DeFi bluechip token carved out consecutive lower highs and lower lows, establishing clear bearish momentum while peers advanced, CoinDesk Research's market insight tool showed. Trading activity surged 40% above seven-day averages, signaling active repricing rather than quiet drift.

AAVE underperformed the CoinDesk 5 Index (CD5), which fell nearly 4%, underscoring the broad-based weakness.

The correction happened despite Aave posting strong growth on its institutional real-world asset lending arm Horizon. The marketplace grew above $450 million since its launch roughly two months ago, data shows.

What Traders Should Watch

Key technical levels signal a potential breakdown risk for AAVE, CoinDesk Research's market insight tool suggested.

  • Support/Resistance: Critical $211.00 support 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 bearish trend across a $26.88 range representing 11.4% overall price decline
  • Targets & Risk: Failed recovery at $212.70 sets up deeper pullback.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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