YEREVAN (CoinChapter.com) — FIFA World Cup is one of the most anticipated sports events in the industry. Thus, traders watch sports-associated tokens more closely, expecting a price appreciation. However, will the FIFA magic work on Algorand(ALGO) and Chiliz (CHZ)?
Algorand partnered with FIFA World Cup in May 2022 to become its official blockchain solutions provider.
As per the sponsorship agreement, Algorand will be a FIFA World Cup Qatar 2022™ Regional Supporter in North America and Europe, and a FIFA Women’s World Cup Australia and New Zealand 2023™ Official Sponsor.
read the announcement.
As part of the agreement, FIFA provides sponsorship assets, including advertising, media exposure, and promotional opportunities. Additionally, Algorand assists FIFA in further developing its digital assets strategy, including a recent FIFA+ NFT collection, announced in Sep 2022.
While Algorand could see fund inflow due to the upcoming FIFA World Cup, charts of its in-house token ALGO weren’t enthusiastic. ALGO price traded at $0.27 on Nov 16, after copying Bitcoin’s crash on Nov 8-9 and consolidating in the aftermath of the FTX exchange collapse.
ALGO price dropped below its crucial support of $0.227, which has been instrumental since early 2021.
The token has attempted to flip the support in the days leading up to the FIFA opening ceremony, eyeing a run-up toward $0.375. Nonetheless, its trading volumes are lackluster, pointing to further stress on the price front.
Chiliz (CHZ) is another crypto platform associated with the sports industry and FIFA World Cup. The platform orients itself as a fan token with a target audience of sports fans, so the major football event has become one of the strongest bullish backdrops behind CHZ’s price escalation.
Notably, CHZ price rallied over 20% in two days to reach $0.23 on Nov 16. But while the FIFA FOMO has promoted Chiliz in the past, the token could face technical headwinds.
Notably, since August, CHZ has witnessed a growing divergence between its rising price and falling relative strength index (RSI). In other words, the token’s price has been forming higher highs while its RSI has been printing lower highs, suggesting a weakening upside momentum.
The deviation could lead to a price decline. Moreover, the dropping trading volumes support the bearish prognosis, pointing to a growing indifference among investors.
Overall, CHZ and ALGO appear like riskier bets in November due to growing panic in the crypto sector.
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