Qatar World Cup fever drives up the cost of fan tokens
These digital fan tokens have gained up to 170% from the lows on November 10 despite the present bear market in cryptocurrencies. The World Cup, which will be contested in Qatar from November 20 to December 18, is at the center of the dramatic upturn.
Fan tokens are digital assets that let supporters interact with and influence the choices made by their preferred club. Additionally, they open up brand-new sponsorship opportunities for national teams and sports clubs that are not previously available.
Here is a quick rundown of the fan token market's biggest gainers, along with an analysis of their technical prospects for the World Cup.
There are 3 top fan tokens for FIFA world cup 2022
1. SPAIN'S NATIONAL FOOTBALL TEAM FAN TOKEN (SNFT)
The highest performer in the sports token category was the Spain National Football Team Fan Token (SNFT), which increased 170% to a high of $0.54 on Nov. 19 after bottoming out at $0.20 nine days earlier.
Daily price chart for SNFT/USD. the TradingView website
The Spanish football team's improved chances of winning the 2022 World Cup may be the reason why SNFT has outperformed other fan-centric cryptocurrency tokens. However, according to Vegas Insider, Spain has +800 odds of taking home the trophy, which means a $100 wager would return $800.
Technically, SNFT trades in a range that is considered neutral, as shown by its daily relative strength indicator (RSI), which is hovering around 58 and below its overbought threshold of 70.
In other words, SNFT exhibits the ability to maintain its upward trend during The World Cup's cost and performance should be reflected in how well Spain's national football team does.
For instance, consecutive victories for Spain might push SNFT's valuation beyond its current resistance level of $0.538 and set it up for a possible rise toward its all-time high of $0.718, as can be seen in the four-hour chart below.
Four-hour price chart for SNFT/USD. the TradingView website
On the other hand, a pullback from $0.538 might cause SNFT to look at a decline toward $0.412, which is down nearly 18% from the current price.
On November 23, Spain will play Costa Rica in Group E. On November 28, Spain will face off against Germany.
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2. BRAZIL NATIONAL FOOTBALL TEAM FAN TOKEN
The second-most popular fan token on the cryptocurrency market right now is the Brazil National Football Team Fan Token (BFT). In just nine days, its price has increased 130%, from $0.45 on November 10 to over $1 on November 19.
Daily price chart for BFT/USD. the TradingView website
Brazil is the clear favorite to win the World Cup this year, with +350 odds, which means a $100 wager would pay out $350. Given that the token still has room to run based on its neutral daily RSI, that might be the underlying driver of BFT's growth in the upcoming weeks.
As of Nov. 19, BFT anticipates breaking through its present resistance level of $1.05 to move closer to its near-term upside goal of $1.16. A prolonged rally might take place If Brazil wins the World Cup on December 18, it will lead to a price increase of 25% to $1.31 from the current level.
3 .PORTUGAL NATIONAL TEAM FAN TOKEN (PORTO)
The Portugal National Team Fan Token (POR), which increased by approximately 100% to $6 on November 19 after falling to lows of $3.10 the previous nine days, is the third-best performer in the current fan token boom.
Daily price chart for POR/USDT. the TradingView website
Portugal's odds of winning the World Cup are at +1600, which means a $100 wager would return almost $1,600.
With its daily RSI close to 64, only six points below its overbought mark, POR is currently testing $6 as its barrier. POR may target a drop toward $4.80, which served as its support level from September through October 2022, if there is a sharp pullback from the aforementioned price ceiling.
In contrast, if Portugal continues to win the World Cup, the picture might change to be bullish, pushing POR above its $6-resistance and setting the stock up for a surge to or above $7
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