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.

AAVE Price

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.

AAVE Price

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