AAVE Spikes 14% to Hit 5-Month High as Bitcoin Bulls Target Breakout Above $60K

Decentralised finance (DeFi) protocol Aave (AAVE) was among the top gainers on Wednesday after surging more than 14% to hit highs of $143.

Cryptocurrency price updates and analysis for August 21 include Aave (AAVE) surging to its highest level in five months, Bitcoin (BTC) price rising to above $61,800, and BTC forming an ascending triangle pattern.

Aave (AAVE) price hit highs of $143 on Wednesday, surging more than 14% in 24 hours. The token reached the level amid huge whale activity in the past few days.

Aave price surged to its highest level in five months.

Aave’s native utility and governance token surged to the highest level since March 2024. The DeFi project’s Aave V3 also deployed on ZKsync Era Mainnet.

“Aave V3 is debuting on Era Mainnet, powered by @zksync, unlocking unprecedented scalability, privacy, and security while expanding the DeFi user base and new institutional use cases,” Aave Labs noted in a tweet.

Rising to above $143, Aave’s price moved to its highest level since March 2024. This is the period when Bitcoin rode the halving mania and spot BTC exchange-traded funds to reach its all-time high.

Aave’s push to current levels means the altcoin could eye fresh gains to the $177-$200 price area. However, the spike in Aave price has also seen a sell signal flash on the daily chart.

Crypto analyst Ali Martinez shared this price outlook for AAVE earlier in the day.

The last four times the TD Sequential flashed a sell signal on the #AAVE daily chart, it was followed by an average correction of 27%. The same sell signal is now appearing, suggesting a potential drop for $AAVE. pic.twitter.com/12yZwLT5tp

— Ali (@ali_charts) August 21, 2024

Bitcoin price rose to an intraday high above $61,838 on top crypto exchange Bitstamp.

BTC chart

The gains had the BTC/USD pair touch the 50-day simple moving average, accentuating the formation of an ascending triangle pattern.

In technical analysis, the ascending triangle is considered 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 looks to resolve on the upside.

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

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

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