The FIFA World Cup in Qatar is boosting the value of national soccer team fan tokens despite the cryptocurrency bear market.
Qatar World Cup Hype Drives Fan Token Prices
These digital fan tokens are appreciating despite the cryptocurrency market crash, posting gains of up to 170% from the lows of November 10. The World Cup, which will be held between November 20 and December 18 in Qatar, is the main reason for this huge upward trend.
Fan tokens are cryptocurrencies that allow fans to get involved and participate in the decisions of their favorite team. In addition, they create new sponsorship opportunities for sports clubs and national squads outside of traditional sources of income.
Here is a brief overview of the top winners in the fan token industry, along with their technical perspectives over the course of the World Cup.
Token of the Spanish Soccer Team (SNFT)
The Spanish soccer team token (SNFT) was the top gainer in the sports tokens section, rising 170% to a high of $0.54 on Nov. 19, nine days after bottoming out at $0.20.
SNFT’s outperformance against other fan cryptocurrencies may reflect the higher odds of the Spanish soccer team winning the World Cup in 2022. But in traditional terms, the odds of Spain winning the trophy are +800, which means that betting USD 100 would yield USD 800according to Vegas Insider.
Technically, SNFT is trading within a neutral zone, as confirmed by its daily RSI around 58, below its overbought threshold of 70.
In other words, SNFT shows potential to continue its rally during the World Cup and its price should reflect the performance of the Spanish soccer team.
For example, Spain’s back-to-back wins may send SNFT’s valuation above its current resistance level of $0.538 for a possible rally towards its all-time high near $0.718, as shown on the four-hour chart below.
On the contrary, a pullback from $0.538 could see the SNFT eye a correction towards $0.412, which would be 18% down from the current price.
Spain will face Costa Rica on November 23 in Group E, followed by Germany on November 28.
Token of the Brazilian soccer team (BFT)
The Brazilian Soccer Team Fan Token (BFT) seems to be the second favorite token on the cryptocurrency market. Its price has risen 130% in just nine days, from $0.45 on November 10 to over $1 on November 19.
Brazil is the favorite to win this year’s World Cup at odds of +350 in traditional betting circles, meaning a $100 bet would return $350. This could serve as a fundamental factor behind BFT’s growth in the coming weeks, as the token still has room to move based on its neutral daily RSI.
Starting on Nov. 19, BFT sees a break above $1.05, its current resistance level, towards its short-term bullish target around $1.16. A prolonged rally could ensue if Brazil wins the World Cup on December 18, paving the way to $1.31, 25% higher than the current price.
Conversely, a pullback could send BFT looking towards $0.82, its October 2022 support level.
Brazil’s first game is against Serbia on November 25 in Group G, followed by a matchup against Switzerland on November 28.
Portugal National Team Token (POR)
The Portugal National Team Fan Token (POR) is the third highest performing fan token boom, rising nearly 100% to $6 on Nov. 19, nine days after hitting lows of USD 3.10.
Traditional bookies measure the odds of Portugal winning the World Cup at +1,600, which means that betting $100 would yield about $1,600.
The POR is now testing the $6 level for resistance, with its daily RSI near 64, just six points below its overbought threshold. A decisive pullback from the quoted price ceiling could see the POR eye a correction towards $4.80, its September-Oct 2022 support level.
Conversely, Portugal’s continued World Cup success could turn the tide to bullish, taking the POR above its $6 resistance and rally to or above $7.
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