AAVE Price Faces Further Downside Amid Horizon RWA Growth
AAVE price plunged over 21% from last week’s high, dipping to $300, its lowest since Aug. 22, mirroring Bitcoin and most altcoins. Meanwhile, Aave’s DeFi platform saw total value locked rise 22% in 30 days to $40 billion, and seven-day fees climbed to $21.2 million, driven by its new Horizon real-world asset (RWA) tokenization product. Horizon now holds $50 million in available funds, with $6.2 million borrowed; Ripple USD leads with $26.3 million supplied, followed by USDC at $8 million. Technical analysis shows AAVE price supported at the 50-day moving average within an ascending channel. A break below the $280 channel floor could push prices toward $245, while holding support may trigger a bounce.
Bearish
The news points to a bearish outlook for AAVE price. Despite positive fundamentals from Horizon’s RWA growth, the token has declined over 21% in a week and fallen to key support at the 50-day MA. Similar past episodes, such as token launches with strong TVL growth that still triggered sell-the-news reactions (e.g., Compound’s SUP token launch), show that technical factors can outweigh fundamental catalysts. A break below the $280 channel floor likely accelerates short-term selling toward $245. If support holds, mid-term stabilization and a bounce are possible, but sustained upward trends require a decisive break above the upper channel. Traders should thus prepare for further downside risk in the short term, while monitoring Horizon adoption metrics for longer-term bullish signals.