Algorand: This is how 2022 FIFA World Cup would be affecting ALGO traders
Are you a football fan? Have you ever thought of collecting and owning a special edition jersey of your favorite footballer as a digital collectible?
Well, wish no more. With the upcoming 2022 FIFA World Cup and the ongoing craze surrounding digital collectibles, you might just be able to do so; courtesy of just announced sponsorship and technical partnership deal between FIFA and Algorand.
Following the announcement, the ALGO token went on an uptrend and recorded a 19% spike. Does this partnership represent a turnaround for this token and should token holders expect happy days in May after a gloomy April? Well, come along.
And It Is a Goalllllll!
The ALGO token stood at $0.7275 at the time of this press. The trading volume for the token after the announcement shot up by 301.78% to stand at $570,912,139 at the time of this press.
At the time of analysis, movements on the price charts were indicative of a bullish bias. Within the last 24 hours following the announcement, investors embarked on a steady accumulation of the token.
This is evident with the RSI at the 52 level moving slowly toward the overbought position. The Money Flow Index (MFI) stood at 39.72 at the time of this writing looking northbound.
However, while these indicators were somewhat suggestive of a bullish trend, it is pertinent to note that the 50 EMA maintained a position above the price at the time of writing. This may be an indication of the bears rallying up to push for a price reversal.
Also worthy of note is the sharp increase in the market capitalization of the ALGO token in the past 24 hours. Standing at $4.03b just before the partnership announcement, the token went up by over 75% in market capitalization.
“Streets Cred” is up
On a social front, the token performed significantly well in the past 24 hours. As of 1 May, the social dominance for the token stood at 0.5186%. However, by 2 May this went up by over 400% to an index of 2.696%.
Similarly, the social volume recorded a significant spike of 76% in the past two days. These uptrends are indicative of increased engagement of the token on a social front following the announcement.
Further to this, a look at the developmental activity for the token revealed that no significant traction was made in that regard. This might, however, take on an uptrend as the FIFA World Cup draws nearer.
Only Just The Beginning
For context, last year, during the Copa America 2021 Final, South America’s soccer body, CONMEBOL in partnership with an NFTs Platform, Ethernity launched an NFT collection that featured 75 editions each of the Argentinian and Brazilian teams’ digital collectibles.