6 2
AAVE Price Reaches $320 Amid Positive Divergence in TVL Metric
The Aave token has surged from $300 to $320, indicating a potential breakout from its previous pattern. This increase aligns with a broader market upswing.
Aave's Positive Divergence
- The Market Cap to Total Value Locked (MC/TVL) ratio for Aave dropped to a two-year low even as its price rose, suggesting strong capital inflows into Aave's contracts.
- This situation indicates that the protocol might be undervalued, potentially driving further price increases.

Price Target for AAVE
- Crypto analyst Ali Martinez suggests a target of $335 for Aave, based on a breakout from a falling wedge pattern on the four-hour chart.
- The expected move to $335 would represent over a 5% increase from the current price of $318.5.

The recent developments suggest potential bullish momentum for Aave, driven by positive on-chain metrics and technical patterns.