September 14th• 3 min read
AAVE Breaks $320 As TVL Hits 2-Year Low
Aave price breaks above $320 following a falling wedge breakout, while its market cap to TVL ratio drops to a two-year low, indicating potential undervaluation amid substantial capital inflows.
Key takeaways
📈 Price Breakout: AAVE reclaimed $320 on September 12, breaking out of a consolidatory pattern with nearly 4% daily gains.
💰 TVL Divergence: Market cap to Total Value Locked ratio hit a two-year low despite price gains, suggesting undervaluation driven by capital inflows.
🎯 Analyst Targets: Technical analysts predict AAVE could reach $335 in its next move, representing over 5% upside from current levels.
📊 Bullish Formation: The falling wedge breakout on the four-hour chart is considered a bullish technical pattern by market analysts.
Deep dive
Aave's recent price action showcases a compelling combination of technical and fundamental strength.
The token's ability to reclaim $320 after breaking out of a falling wedge pattern demonstrates renewed bullish momentum, while the market cap to TVL ratio dropping to its lowest level in two years indicates that substantial capital is flowing into Aave's contracts faster than the market cap is growing.
This positive divergence suggests the protocol may be undervalued relative to its fundamental growth.
Analyst Ali Martinez has set a near-term target of $335 based on the technical breakout, while on-chain data from CryptoOnchain supports the bullish thesis through TVL metrics.
The sustainable nature of this TVL growth, provided it's not driven by short-term yield farming, could serve as a strong catalyst for both AAVE's price appreciation and the protocol's long-term fundamentals.
Polaris insights AI-generated
Disclaimer: This article may contain content generated or assisted by AI, based on information from public sources. While we aim for accuracy, no content should be taken as financial or trading advice. Always do your own research and consult a professional before making investment decisions. Markets are volatile and involve risk.
