Why Did Football Fan Tokens Perform Poorly During FIFA World Cup?

National team Fan Tokens increased significantly in anticipation of the 2022 FIFA World Cup but underperformed during the event itself.

The price of these tokens was directly affected by the performance of their respective teams. This was especially visible in Argentina’s loss against Saudi Arabia and during its run to win the World Cup held in Qatar.

The Argentine Football Association Fan Token (ARG) price peaked prior to the final and has decreased since. Moreover, the price of the Brazil National Fan (BFT) price fell sharply after Croatia eliminated Brazil. Finally, the Spain National Football Team Fan Token (SNFT) price crashed immediately after their elimination from Morocco.

The same underperformance holds for Chiliz (CHZ), the native token of the Socios platform, in which these fan tokens reside.

Argentine Fan Token Peaks Before Finals

The FIFA World Cup started on Nov. 20 and ended on Dec. 18. The ARG price peaked on Nov. 18 and was already falling once the FIFA World Cup started (red icon). The next drop occurred on Nov. 22 (black icon), when Argentina suffered a shock loss against Saudi Arabia.

Afterward, the ARG price rallied by 180% between Dec 9 –16 (highlighted) after the team won their quarterfinal clash against the Netherlands and was on its way to the final.

However, even though Argentina and Lionel Messi were crowned world champions on Dec. 18, the ARG fan token price crashed shortly afterward, validating the slop of the resistance line (red circle). This likely occurred as fan token holders cashed out, and also caused the daily RSI to fall below 50, a sign of a bearish trend.

Therefore, the most likely price projection is a drop toward a new all-time low. Breaking out from the resistance line would invalidate this bearish forecast.

ARG/USDT Daily Chart. Source: TradingView

Brazil Token Slumps After Elimination

The Brazil Fan Token also fell sharply during the World Cup. Interestingly, the BFT price fell even after the team posted successful results, as was the case after the Nov. 24 win against Serbia (red icon).

Shortly afterward, the BFT price broke down from the $0.50 horizontal support area and accelerated its rate of decrease.

Brazil’s elimination on Dec. 9 caused a 55% drop in a day and led to a new all-time low of $0.05 on Dec. 17.

Interestingly, BFT began an upward movement two days later but is still trading below significant resistance at $0.20.

As a result, unless it reclaims this area, the most likely price forecast is a continued drop toward new all-time lows.

BFT/USDT Six-Hour Chart. Source: TradingView

Spain Fan Token Falls 60% After Elimination

The SNFT has fallen by 90% since the start of the FIFA World Cup. Similar to the Brazil fan token, SNFT fell by 62% after their shock elimination to Morocco on Dec. 6 (red icon). It reached an all-time low of $0.033 the same day.

While SNFT began an upward movement on Dec. 19, it is trading well below the $0.09 resistance area. As a result, the trend is bearish until this area is reclaimed and new all-time lows are likely.

SNFT/USDT Six-Hour Chart. Source: TradingView

To conclude, national teams fan tokens were heavily affected by their team’s performance and by the end of the World Cup. The movement looks like a case of “buy the rumor sell the news”, since the price of most tokens peaked just before the event. In the case of ARG, the price had another peak before the final but crashed even after the team won the FIFA World Cup.

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