Crypto Market Review, December 27th

The market remains in a stalemate as most of the big investors and traders have left the industry until the new year. Liquidity and volatility are absolutely low for most trading pairs, but even when market conditions are bad, some hidden gems have emerged. However, safety should always be a top priority.

AAVE Breakout Potential

Over the past three days, AAVE has been steadily rising despite the market stalemate. The reason behind it doesn’t seem to have anything to do with the underlying changes about the project or the news pushing it. The only justification for asset growth is speculative interest in tokens.

Since November, AAVE has been in a sharply declining price range, with trading volume slowly declining. The patterns we have seen on the asset’s daily chart clearly indicate a possible reversal as the current trend is slowly fading away.

The breakout of the first resistance level reflected in the 21-day moving average sets AAVE to the upper boundary breakthrough of the range bound and then leads to a complete trend reversal. This could go back to his November when AAVE hit his $96 price level.

The project’s TVL remains high, with $3.75 billion worth of assets locked in various smart contracts on the network. Most of the TVL ($1.8 billion) is included in the lending agreement, but staking and pool 2 correspond to the lower share of value locked on the network.

Cardano’s TVL on the move

It is a well-known fact that Cardano is not the “go-to” network for DeFi enthusiasts. Because this part of the industry comes solely from blockchain and has a lot to prove to attract cryptocurrency investors to the network, although some of his DeFi solutions and platforms already It exists and is working fine. This explains why Cardano earned his $54 million on his TVL in a dying market.

Cardano constantly celebrates the launch of new products, like Optim Finance, that attract additional funds to the platform. Optim, for example, has already raised over his $1 million on TVL since launching just a few weeks ago. His largest TVL holder in the network is his Minswap decentralized exchange, with over $24 million in user funds locked into the platform.

Unfortunately, the price performance of Cardano’s underlying cryptocurrency does not correlate with the network’s TVL and market cap growth. ADA has lost more than 17% of its value in its most recent plunge in December and has yet to find a foundation for a reversal.

At the time of writing, ADA is trading at $0.26 with a 7.6% price gain over the past five days, likely nothing more than a correction of the downtrend.