Despite the Market Downturn, BNB and AAVE Remain Structurally Bullish

The larger cryptocurrency market's capitalization has been on a decline lately, dropping by 2.06% to $3.33 trillion. However, a broader analysis

The cryptocurrency market has seen a decline in capital inflows, which is a sign of lack of active investment. According to Glassnode, capital inflows have dropped from $134 billion on 10 December to $100 billion at the time of writing. This downturn in capital inflows is usually a sign that the market lacks bullish sentiment for a majority of cryptocurrencies. Instead, investors appear to favor holding stable assets rather than purchasing volatile tokens. This would reinforce bearish market sentiment and increase the likelihood of sustained declines.

However, some tokens can be expected to maintain their bullish momentum and potentially outperform the broader market. BNB, for instance, remains one of the best-performing cryptocurrency assets of 2024, having achieved two all-time highs within the year. After its previous peak of $691.77 in 2021, BNB surpassed this level in June 2024, hitting $721.80 on the charts. By December 2024, it set another record, trading at $793.86.

At the time of writing, BNB seemed to be in an accumulation phase, as indicated by its chart patterns. If the token exits this phase, it could ignite another rally, with a strong possibility of surpassing its previous high and targeting levels above $800.

Another token that has remained structurally bullish on the price chart is AAVE. After months of market consolidation, the asset broke out in January, rallying by 332.78% to hit $399.85 – A level last seen in 2021.

AAVE also achieved a new all-time high for its Total Value Locked (TVL) on 17 December, peaking at $23.19 billion. However, its TVL has since recorded a minor pullback to $20.63 billion. This slight dip suggested that AAVE remains fundamentally bullish, especially as activity on its protocol continues to grow.

If the TVL stabilizes or increases, AAVE’s price is likely to extend its upward momentum. Especially since it’s central in driving the platform’s operations.

One key requirement for an altseason rally to materialize is a decline in Bitcoin Dominance, a metric that compares Bitcoin’s performance to other altcoins in the market. At the time of writing, CoinMarketCap reported that Bitcoin Dominance fell slightly by 0.18%, dropping to 56.94%.output