Crypto Market Review, December 27

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Arman Shirinyan

Crypto market is still a wasteland as majority of assets remain deadlocked

Contents

AAVEL’s Breakout PotentialCardano’s TVL in Motion

The market remains at an impasse as the majority of major investors and traders have exited the industry until the new year. Liquidity and volatility on most trading pairs are at absolute lows, but even in poor market conditions some hidden gems are breaking out. However, safety should always be the number one priority.

AAVE’s breakout potential

Over the past three days, AAVE has steadily risen despite the market stalemate. The reason behind this doesn’t seem to have anything to do with any fundamental changes around the project or any news pushing it up. The only thing justifying asset growth would be speculative interest in the token.

Source: Trading View

Since November, AAVE has been trading in a sharply decreasing price range with slowly decreasing trading volume. The pattern we saw on the daily chart for the asset clearly shows potential for a reversal as the current trend is slowly fading.

The breakout of the first level of resistance reflected in the 21-day moving average will set up the AAVE for the breakout of the upper boundary of the range boundary, which will then lead to a complete reversal of the trend. This was a possibility in November when AAVE hit the $96 price level.

The project’s TVL remains at a high level, with $3.75 billion in assets locked in various smart contracts on the network. The bulk of TVL ($1.8 billion) is made up of loan contracts, while staking and pool2 are a lower share of value locked on the network.

Cardano TVL in motion

It’s a well-known fact that Cardano is not the “go-to” network for DeFi enthusiasts, as this part of the industry originated only in blockchain and has a lot to prove to cryptocurrency investors. to attract them to the network. However, some DeFi solutions and platforms already exist and are working successfully, which explains how Cardano earned $54 million in TVL during the dying market.

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

Unfortunately, the price performance of Cardano’s underlying cryptocurrency is not correlated with the rising TVL and market capitalization of the network. ADA lost more than 17% of its value during the last fall in December and has yet to find a basis for a reversal.

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

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