• Aave reached a five-month high above $143 with a 14% increase.
• Bitcoin broke above $61,800, with its price rising 4% on crypto’s newfound resilience.

Aave continued to outperform its peers on August 21, with a sharp rise to a five-month high. Meanwhile, Bitcoin price broke through $61,800, up 4% in 24 hours.

AAVE rises 14% to 5-month high

Decentralized finance (DeFi) protocol Aave (AAVE) was among the biggest gainers on Wednesday after surging more than 14% to a high of $143. Aave’s native utility and governance token reached this level amid massive whale activity in recent days.

There was also positive news for Aave after the DeFi project’s Aave V3 was deployed on ZKsync Era Mainnet.

Aave V3 Debuts on Era Mainnet, Powered by @zksyncenabling unprecedented scalability, privacy, and security while expanding the DeFi user base and new institutional use cases. photo.twitter.com/blNlUjsalX

— Aave Labs (@aave) August 21, 2024

AAVE Price Prediction

Aave’s price surged above $143, its highest level since March 2024. This is the period when Bitcoin benefited from the halving mania and BTC ETFs spotted to reach their all-time highs.

AAVE’s push to current levels means that the altcoin can expect fresh gains in the $177-$200 price area. However, the spike in AAVE price has also shown a sell signal on the daily chart.

Crypto analyst Ali Martinez shared this price prediction for AAVE earlier today.

The last four times the TD Sequential gave a sell signal on the #AAVE daily chart, was followed by an average correction of 27%. The same sell signal is now appearing, indicating a possible decline for $AAVE. photo.twitter.com/12yZwLT5tp

— Ali (@ali_charts) August 21, 2024

Bitcoin bulls aim for breakout above $60k

While Bitcoin has struggled to find momentum since the brutal sell-off in early August, bulls have remained largely undeterred. Buyers have shown great determination in their quest to climb above $60k.

Over the past 24 hours, the benchmark crypto has surged above this crucial level and it looks like this small advantage will now increase further.

BTC reached an intraday high of over $61,838 on major crypto exchange Bitstamp.

BTC chart

The gains see the BTC/USD pair touching the 50-day simple moving average, accentuating the formation of an ascending triangle pattern. Among technical analysts, the ascending triangle is seen as a bullish chart pattern where the resistance level follows a horizontal line.

Meanwhile, swing lows follow a rising trendline that forms a narrowing triangle as price appears to be moving upwards.

Bitcoin’s daily chart suggests this is the case for BTC since its dip to lows of $49,577 on August 5. Notably, the 50-day SMA is currently acting as a robust hurdle. If bulls decisively break higher, the price could target the key supply wall around $68,255.

However, if weakness returns, the primary support area could be around $58,266 and then around $55,800.