Argentina’s stunning 2-1 loss to Saudi Arabia in the opening match of the 2022 FIFA World Cup has sent shockwaves through the football world – and also dealt a heavy blow to the price of the Argentine Football Association Fan Token (ARG). The ARG fan token is a cryptocurrency that can be used to purchase merchandise, vote in fan polls, and access exclusive content from the Argentine national team.
The token was launched earlier this year in partnership with blockchain platform Socios.com, and its value has been highly volatile since then. However, the recent World Cup results have seen a sharp decline in the token’s price, with it currently trading at around $5.50. This is a far cry from its price of $9.00 just a few days ago. While it is still too early to say how Argentina’s performance in the World Cup will affect the long-term value of the ARG fan token, it is clear that the team’s results will have a significant impact on the price of the token in the short term.
ARG Token Technical Analysis
The technical chart of the Argentine Football Association Fan Token (ARG) has formed a possible cup and handle pattern since its inception. It could be noticed that during its bullish run, the price level was unable to maintain sustainability above 0.786 FIB level on the Fibonacci retracement table. This resulted in a major downfall for the fan token. Additionally, selling pressure for ARG token was witnessed much before the loss against Saudi Arabia in the FIFA World Cup 2022. The decline started from the price level of $8.76 and had support around 0.5 FIB level before the setback came.
How Fan Tokens have made significance in the sports industry?
Popularity for fan-based tokens has also increased recently in the sporting industry, with token sales volumes frequently increasing by more than 250% month on month since January 2022.
While the tokens do not represent team ownership, they do allow buyers to vote on some decisions made by sponsoring teams as well as gain access to certain rewards.
Despite the fact that the tokens were not designed for that purpose, some appear to have viewed them as an indirect manner to invest in the success of such teams. Other than the on-field success of soccer teams, the tokens are influenced by factors such as the regular ebbs and flows of crypto markets and breaking news events.