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. Disclaimer: Parts of this article were generated with the 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.