- AAVE’s price has climbed from $130 to above $340 in 2025, with an ascending trendline providing consistent dynamic support.
- The Market Cap to TVL ratio dropped to a two-year low, reflecting faster TVL expansion and strong protocol capital inflows.
- Open Interest has risen steadily as AAVE trades between $300–$350, indicating controlled leveraged exposure and conviction among market participants.
AAVE is trading near $319.75 after weeks of steady growth, as its unusual divergence between price and MC/TVL draws attention to bullish potential.
Price Structure Supporting the Bullish Setup
AAVE has made its move from approximately $130 in 2024 to above $340 in 2025. This rally has now, and for before now, had an ascending trendline as its guiding point, which has acted as extremely strong dynamic support for the market.
Each retest of this level has generated renewed demand, confirming buyers’ willingness to defend the structure. At present, the token holds above $300, keeping the setup for another bullish move intact.
Momentum indicators reinforce the outlook. The MACD is positioned near the zero line, with the blue line holding above the signal. RSI remains neutral at 54.5, showing balanced conditions that leave room for continuation.
Divergence Between Price and MC/TVL Ratio
The divergence between price growth and the Market Cap to TVL ratio has become a key focus for market participants. Despite the rise in value, the MC/TVL ratio has dropped to its lowest level in two years.
This situation points toward substantial inflows into AAVE contracts, which have boosted TVL at a faster rate than market capitalization. The outcome is a rare positive divergence that suggests valuation has yet to fully reflect underlying activity.
If the TVL expansion is sustained by long-term usage rather than short-term farming, this divergence could form the base for the next bullish leg. The protocol’s strength would then be supported by both technical and fundamental drivers.
Open Interest Growth Reinforcing Momentum
Derivatives data provides further context for the potential bullish setup. Open Interest has risen sharply in the past week as AAVE’s price moved back into the $300–$350 zone, with activity appearing more measured compared with earlier spikes.
The alignment of expanding OI with rising price suggests fresh long positions are entering the market. This steady growth indicates conviction among traders, supporting the case for continuation rather than speculative excess.
If this controlled momentum persists, the $330–$338 zone will be the first resistance to watch. A decisive breakout above $355 could confirm that the divergence between price and MC/TVL is fueling AAVE’s next bullish leg.
