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Real Madrid are going through a rough patch at the moment. The defeat to Barcelona hurt, especially considering that the gap in La Liga just got wider. Their Champions League performances have not been too dominant of late, which may pile more pressure on the team. Somewhere among the players and fans, the disappointment over Ballon d'Or does echo very loudly because though quite a few players were nominated, Vinicius Jr. included, none eventually walked away with the award. And a composite of these results will be enough to surmise that the team's spirits have been dented. Ancelotti will have to come up with a fresher strategy and new tactics to get back to winning ways and raise the team once more.
Madrid is indeed more favored in this match against Osasuna, especially since they are playing at home, but if you look at Real Madrid's recent performance, it is very doubtful that Real Madrid can win this match. This season, Osasuna has performed better than the previous season.
And seeing that Atletico Madrid only has a one-point difference with Real Madrid, so no matter what, Real Madrid must be able to win this match to catch up and secure its position in 2nd place in the standings.