Exactly
that's why I say Real Madrid are favorites
the players were more rested, both physically and mentally (due to La Liga)
Well, but Real's players are also significantly older than Liverpool's team. That could make up for this disadvantage for Liverpool. Liverpool now has two important games left this season (last league game and CL final). For these two games, the highlights of the season, they will once again put everything on the line, no matter if they are physically and mentally drained or not.