The fan tokens of Brazil, Portugal and Spain all experienced volatility during the world cup matches of their national teams. The volatility was present in both directions.
The 2022 FIFA World Cup is being held in Qatar between Nov. 20 and Dec. 18. One of the event’s main sponsors is Chiliz (CHZ), a fan token platform.
An interesting development is the fact that the price of national team fan tokens is responding to the results of the respective teams.
This was especially visible in the case of the Argentine Football Association Fan Token (ARG). After Argentina lost 2-1 to Saudi Arabia, the token dropped by nearly 30%.
With that in mind, we will analyze the price of the Brazil, Portugal and France Fan Tokens and determine if they are reacting to their teams’ results.
Brazil Fan Token Creates Triple Bottom Pattern
The Brazil Fan Token (BFT) is trading inside the $0.48 horizontal support area, creating a triple bottom pattern. Besides being a bullish pattern, the triple bottom is combined with bullish divergence in the RSI (green line).
Moreover, the BFT price bounced on Nov. 22 and created a bullish engulfing candlestick (green icon). These are bullish signs suggesting the price is expected to move upwards.
If the Brazil Fan token price breaks out from its descending resistance line, it could increase to $0.70. However, a close below $0.48 would indicate that the trend is bearish instead.
It is worth mentioning that while the Brazil national team won 2-0 in their group stage match against Serbia on Nov. 24, the price actually reacted negatively to the win and fell by nearly 7%.
Portugal Fan Token Experiences Volatility
Since the captain of the national team is Cristiano Ronaldo, it makes sense that the Portugal Fan Token (POR) receives considerable attention. The POR price is currently trading above the $4 support area. This is a crucial level, a breakdown below which could accelerate the rate of decrease. Conversely, a bounce could lead to an upward movement towards the next resistance at $6.40.
Therefore, whether the POR price closes below it, or bounces will likely determine the direction of the future trend.
Unlike the case of the Brazil Fan Token, the POR price experienced considerable volatility between 17:00 – 19:00 CET, during which time the Portugal national team won 3-2 against Ghana. The POR price created a long upper and lower wick with magnitudes of nearly 9%. However, the end result was a negligible price difference relative to the beginning of the game.
Spain Token Fall to New Monthly Low
The Spain national team fan token has decreased below a descending resistance line since Nov. 19. The downward movement led to a new monthly low price of $0.21 on Nov. 25.
Currently, there are no bullish reversal signs in place. The RSI is decreasing, is below 50, and has not generated any bullish divergence. As a result, the continuation of the downward movement is the most likely scenario.
If by any chance a breakout occurs, the closest resistance area would be at $0.36. This is created by the 0.382 Fib retracement resistance level and a horizontal resistance area.
The Spain national team played their World Cup match on Nov. 23. Even though they won 7-0 against Costa Rica, the SNFT price actually fell by nearly 30% during the game. The drop continued during the next 24 hours, taking SNFT close to a new all-time low.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer: BeInCrypto strives to provide accurate and up-to-date news and information but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
