Nevertheless, some categories and projects within them have been more resilient than others. More specifically, the Decentralized Finance basket fell by single digits, while its best performer, Aave (AAVE), had a positive rate of increase.
Decentralized Finance Shows Resilience
Since the start of August, the Bitcoin price has fallen by 3%, and most categories have had negative performances. The basket of Liquid Staking (green) tokens was the worst performer, falling over 31%. Other notable categories, such as Layer-1 blockchains, meme coins, and gaming tokens, all posted declines of over 20%.
However, DeFi (white) stands out from with pack with a measly 7% decline in August, over twice as small as the other ones.
In this category, the performance is skewed by AAVE (purple), which has increased by over 7% since the start of the year. The remaining tokens comprising the basket have all fallen over 10%. KAVA is the biggest loser, with a decline of 25%, while SUSHI is the second-best performer, falling slightly over 11%.
Let’s examine the AAVE price movement and see if it can sustain this increase in September.
What’s Next for Aave?
The weekly time frame chart for AAVE gives a bullish outlook. Since June, the price has increased alongside an ascending support trend lineand, while doing so, managed to break out above the $120 horizontal resistance area. This critical area has existed since June 2022, except for a deviation in March 2024 (black circle).
The Aug. 19 – 26 close was the highest weekly close in over two years and confirmed the breakout from the $120 area. While AAVE has fallen since it is simply validating the $120 area as support.
In August, AAVE was the best-performing token in the best-performing category, DeFi. Its price action is bullish as long as it does not close below $120. Unless that happens, a significant upward movement could follow in September.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
