AAVE Drops 8% Amid Crypto Weakness Despite RWA DeFi Momentum

AAVE's price fell by 8% to $208 due to significant institutional selling, breaking below a key support level of $211. The decline came amid broad weakness in the cryptocurrency markets, where AAVE had previously reached $248 earlier in the week. This bearish trend was marked by consecutive lower highs and lows, confirming a negative shift as trading activity surged by 40% above the seven-day average. Despite its institutional real-world asset lending service, Horizon, growing to $450 million within two months of launch, AAVE underperformed relative to the CoinDesk 5 Index, which saw a 4% drop. Analysts pointed to key technical levels indicating a breakdown risk, as the $211 support failed and previous gains were capped by resistance at $235. The overall sentiment remains bearish for AAVE as deeper pullbacks loom under current market conditions.

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