AAVE Tests $295–$300 Support, Could Rally Toward $400 as MC/TVL Drops to Two-Year Low

• Support: $295–$300 — hold here could send AAVE toward $400

• Immediate resistance sits at $320; a break above is needed for momentum to reach the upper channel.

• MC/TVL hit a two‑year low as TVL outpaced market cap growth, signaling heavy capital inflows into AAVE contracts.

Meta description: AAVE price testing $295–$300 support; holding may spark a bounce to $400. MC/TVL at two‑year low signals TVL inflows — read levels and trade guidance.

What is AAVE price doing at $295–$300 support?

AAVE price is testing the $295–$300 support band on the daily chart; holding this area would preserve the rising channel and likely propel the token toward the $400 upper channel. A confirmed daily close below $285 would invalidate the channel and shift focus to $250 as the next support level.

How could a bounce to $400 play out?

Short-term traders should watch for increased buying volume and a break above $320 to confirm momentum. The $320 level acts as medium resistance; sustained volume above $320 increases the probability of a run to the channel top near $400. Current 24‑hour volume (~$391,288,697) shows elevated market participation around support.

AAVE trades near $295–$300 support with potential bounce toward $400 as MC/TVL data shows strong capital inflows.

• The support zone targeted by AAVE is the one at 295-300 and maintaining this zone would move the token in the direction of the upper channel of 400.
• The next resistance of AAVE is located at $320, which also serves as a very important medium resistance since traders analyze the price movement of a day and market momentum.
• The MC/TVL ratio hits a two-year low, signaling strong capital inflows boosting TVL while price consolidates near key support.

AAVE is testing critical support at $295–$300 on the daily chart, determining whether the token continues its upward trend toward $400. Traders are observing this level closely for potential price movement.

How is the technical setup at channel support?

AAVE sits near the lower boundary of a rising daily channel. The $295–$300 band has previously acted as a reliable support base, enabling rebounds when tested. Technical structure remains bullish while price respects this zone and daily closes remain above $285.

On-chain commentary from market monitors such as CryptoPulse (plain text mention) suggests a hold here would likely trigger a move toward the channel top near $400. Invalidation occurs on a daily close below $285, opening a clear path toward $250.

If the support breaks and AAVE closes below $285, the token would exit the rising channel and likely target $250 as the next support. Traders should monitor daily closes and volume criteria before adjusting position sizing.

What is the near-term resistance and market activity?

Near-term resistance sits at $320, a key sell wall that may impede upward momentum. Clearing $320 with meaningful volume increases the odds of a test of the $400 upper channel. Failure to breach $320 could result in sideways action or a retest of support.

24‑hour trading volume at roughly $391,288,697 signals active participation; strong volume is required to sustain any meaningful bounce from current levels.

How does MC/TVL affect AAVE valuation?

Fundamentals show AAVE’s Market Cap to TVL ratio has dropped to a two‑year low while price consolidated near support. This divergence stems from TVL increasing faster than market capitalization, implying substantial capital inflows into AAVE contracts even as market cap lags.

When MC/TVL compresses due to rising TVL, the token can appear relatively undervalued versus on‑chain activity. Traders should assess TVL quality, composition of inflows, and whether TVL growth is sustainable before assigning long-term valuation adjustments.

Frequently Asked Questions

What are the key trade levels for AAVE right now?

Support: $295–$300 (critical). Invalidation: daily close below $285. Resistance: $320 (near-term) and $400 (upper channel target). Volume confirmation above $320 favors a move to the upper channel.

How should traders use MC/TVL data?

Use MC/TVL as a contextual signal: a falling ratio driven by rising TVL can indicate capital inflows and relative undervaluation. Validate with TVL quality, net deposits, and broader market conditions before trading.

Key Takeaways

• Critical support $295–$300: Hold to maintain the rising channel and preserve the path to $400.
• Resistance to watch $320: Break and hold above $320 with volume improves the chance of reaching the upper channel.
• MC/TVL divergence: Two‑year low in MC/TVL reflects strong TVL inflows; assess TVL quality for sustainability.

Conclusion

In summary, AAVE price is at a pivotal $295–$300 support band that will determine near‑term direction. Technical structure remains bullish while daily closes stay above $285, and MC/TVL indicates notable TVL inflows that may support a rebound. Monitor volume and TVL quality—adjust risk management accordingly.