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Santos Crypto: Why This Fan Token Is On The Rise

The Santos crypto token has seen sudden growth in trading volume and price. But how high could this token go?
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Probably no country in Latin America got hit as hard by the coronavirus as Brazil. At last check, there were more confirmed cases of COVID-19 in Brazil than the next seven countries combined. Things got so bad that 90% of soccer fans in the country thought that restarting the season was a bad idea. To keep fans engaged during this time, one team launched its own cryptocurrency. Thus, Santos crypto tokens were born.

The Santos crypto token was the result of a collaboration between Binance and Santos FC. Without getting too deep into the details in return for helping launch this fan token, Binance became a sponsor of the club and licensee. This is how Binance came to launch a Santos NFT series – among other club related ventures. And more NFTs are likely on the way.

The result of the partnership padded the pandemic-hit pockets of the club by $10 million. And fans appeared excited about the new venture. But keep in mind, this was in 2021 when crypto was still a hot commodity.

Since the launch, the Santos crypto token’s value has dropped substantially. But just this week, a big surge took place. And the value of Santos crypto jumped more than 300% in less than a week. This all happened while the rest of the markets were either going sideways or outright sinking. So what’s behind the big price jump? And can we expect more growth in the future?

Why Santos Crypto Shot Up

The reason Santos crypto has been on the rise is actually pretty simple. It’s just a matter of access. And the fan token was just recently listed on the Binance exchange. Before this, access was very limited. But now fans (and investors) can buy and trade tokens on the popular exchange with a simple debit card or via a bank transfer.

But why would fans shell out hard-earned Brazilian real for the chance to own a piece of their favorite team’s token? Well unlike more traditional forms of crypto, holders of the Santos crypto token are granted a slew of fan benefits.

For starters, token holders are given the ability to participate in voting to help guide what future benefits holders can reap. These include access to digital collections and loyalty points. On top of this, by using Santos crypto and Binance Pay, fans can buy unique merchandise, tickets to matches and fan club memberships.

Furthermore, Santos crypto token holders will occasionally be granted access to autograph sessions, training camps and can even attend meetings held with some of the team’s legendary players. And the token itself can be donated in return for a proof-of-loyalty badge. In other words, it’s a way to prove to others your superfan status.

This is a particularly big deal in Brazil. As you probably know, soccer (ahem, football) is a big deal in Brazil. And Santos is one of the most storied clubs in the country. No team has scored more goals. No team in the Brazilian football league system has won more championships. And Santos has discovered some of the most famous players of all time like Pelé, Robinho and Neymar. They’re kind of like the Yankees of Brazil.

How High Can This Token Go?

With as many fans as Santos has, it’s fairly safe to assume the Santos crypto token will be in fairly high demand. At last check, roughly 4.5 million tokens were in circulation. But that’s only around 15% of the total maximum supply. But there is growing demand for these types of fan tokens.

The Manchester City Fan Token (CITY) has also seen a healthy price spike lately. It’s up more than 67% in the past week. The Paris Saint-Germain Fan Token (PSG) has seen even more growth in value of late.

In the long-run, it wouldn’t be at all surprising to see fans buying more of their teams tokens just to prop the price up higher than the tokens of other football clubs. It wouldn’t be the craziest thing we’ve seen football fans do. Turning the value of cryptocurrencies into a competition would be at most on-par for football fans. So really, it depends on how quickly the Santos crypto tokens are released.

If the current circulating supply stays steady – and Santos FC continues to play well, it’s likely to drum up more interest in the token. And it wouldn’t be surprising to see it get back to its former glory around the $15 mark. That would mean a gain of more than 290% of its current value. But that’s about as optimistic as we can be.

If, however, the tokens start rolling out in droves quickly, it’s likely to push the value back down to where it was before the Binance listing.

The Bottom Line on Santos Crypto

From an investment standpoint, Santos crypto doesn’t have all that much of a draw for us. Sure, it could make some major leaps in value. But we appreciate it more as a tool for fans. It’s similar to why we headed over to the Rally Network back in February to pick up one of our favorite band’s new tokens.

It’s novel. There’s certainly a marketing angle to it. And it’s a fresh way to get fans engaged with the team. It’s a fun concept for sure. But not one that we’re likely to see folks getting rich from. If you’re a fan of Santos, by all means, pick up some of the club’s tokens. But if you consider Santos a rival of your favorite team, you can always pick up some S.C. Corinthians Fan Tokens (SCCP) at Socios.com instead. Or you can just buy a jersey like a regular old boring fan.

Read Next: RLY Crypto: How This Token Is Ushering in a New Use for Crypto

The post Santos Crypto: Why This Fan Token Is On The Rise appeared first on Investment U.

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Stocks

Price analysis 8/8: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, AVAX

Bitcoin price aims to break from its current range and flip $24,000 to support, while altcoins are following the upside move by attempting to confirm their…

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Bitcoin price aims to break from its current range and flip $24,000 to support, while altcoins are following the upside move by attempting to confirm their bottoming patterns.

The United States equities markets and the cryptocurrency markets have started the week on a strong note, indicating that traders are not nervous about buying ahead of the important Consumer Price Index (CPI) data for July, which will be released on Aug. 10.

Another positive sign is that the recent recovery in Bitcoin (BTC) has not tempted investors to exit their positions in fear of another leg down. Glassnode data shows that the percentage of supply that has stayed dormant for three or more years rose to a new all-time high of 38.426% on Aug. 8.

Daily cryptocurrency market performance. Source: Coin360

BlackRock CEO Larry Fink sold 44,000 BlackRock shares in August, the biggest sale since the COVID-19 crash. Some analysts are speculating that the current recovery in the equities markets is only a bear market rally. If that is the case, then a downturn in the equities markets could also increase the selling in crypto prices as both remain closely correlated.

Could Bitcoin and select altcoins climb above their respective overhead resistance levels and extend the recovery in the short term? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin bounced off the 20-day exponential moving average (EMA)($22,846) on Aug. 7 and the momentum picked up on Aug. 8. The buyers pushed the price above $24,000 and could challenge the overhead resistance at $24,668.

BTC/USDT daily chart. Source: TradingView

The 20-day EMA is sloping up and the relative strength index (RSI) is in the positive territory, indicating that bulls are in control. If buyers propel the price above the overhead resistance, the BTC/USDT pair could pick up momentum and rally to $28,000 as there is no significant resistance in between. The bears may try to stall the recovery at this level but if bulls overcome this barrier, the up-move could reach $32,000.

Contrary to this assumption, if the price turns down from $24,668, the pair could drop to the 20-day EMA. This is an important level to watch out for because a break below it could drag the price to the 50-day simple moving average (SMA($21,594). A break below this level could put the bears back on top.

ETH/USDT

Buyers pushed Ether (ETH) above the overhead resistance at $1,700 on Aug. 5 and the bulls successfully defended the breakout level on Aug. 6 and 7. Buying resumed on Aug. 8 and the bulls pushed the price above the overhead resistance at $1,785.

ETH/USDT daily chart. Source: TradingView

If bulls sustain the price above $1,785, the ETH/USDT pair could pick up momentum and rally to the psychological level at $2,000. This level may attract selling by the bears but if bulls arrest the next decline above $1,700, the likelihood of a break above $2,000 increases. If that happens, the pair could rally to the downtrend line.

This positive view could invalidate in the short term if the price turns down and breaks below the 20-day EMA ($1,606). The pair could then slide to the 50-day SMA ($1,362).

BNB/USDT

BNB recovery has reached the strong overhead resistance zone between $338 and $350 where the bears are expected to mount a strong defense.

BNB/USDT daily chart. Source: TradingView

If the price turns down from the current level, the BNB/USDT pair could decline to the 20-day EMA ($289). This is an important level to keep an eye on because a strong bounce off it will suggest that the positive sentiment remains intact and traders are viewing dips as a buying opportunity.

The bulls will then make one more attempt to clear the overhead zone. If they succeed, the BNB/USDT pair could further pick up momentum and rally toward $414. This positive view could invalidate in the short term if the price turns down and breaks below the 20-day EMA.

XRP/USDT

XRP’s price has been squeezed between the 20-day EMA ($0.36) and the overhead resistance at $0.39 for the past few days. Usually, such tight ranges lead to a range expansion.

XRP/USDT daily chart. Source: TradingView

The rising 20-day EMA and the RSI in the positive area indicate advantage to buyers. If bulls push and sustain the price above $0.39, it will suggest the start of a new up-move. The XRP/USDT pair could then rise to $0.48 and later to $0.54.

This positive view will invalidate in the near term if the price turns down and breaks below the 20-day EMA. The pair could then drop to the 50-day SMA ($0.35). Such a move will suggest that the pair may spend some more time inside the range.

ADA/USDT

Cardano (ADA) bounced off the 20-day EMA ($0.50) on Aug. 5 and has reached the strong overhead resistance at $0.55.

ADA/USDT daily chart. Source: TradingView

The 20-day EMA is sloping up and the RSI is in the positive territory, indicating that the path of least resistance is to the upside. If buyers thrust the price above $0.55, the ADA/USDT pair could start its northward march toward $0.63 and then to $0.70. The bears may pose a strong challenge at this level.

To invalidate this positive view, the bears will have to sink and sustain the price below the 50-day SMA. That could extend the stay of the pair inside the range between $0.40 and $0.55 for a few more days.

SOL/USDT

Solana (SOL) rose above the 20-day EMA ($40) on Aug. 5 and the bulls thwarted attempts by the bears to sink the price back below the level. The buying resumed on Aug. 8 and the bulls will attempt to push the price to the overhead resistance at $48.

SOL/USDT daily chart. Source: TradingView

The 20-day EMA is rising up gradually and the RSI is in the positive zone, indicating that the bulls have the upper hand. If buyers drive the price above $48, the bullish ascending triangle pattern will complete. The pair could then start a rally to $60 and thereafter to the pattern target at $71.

Alternatively, if the price turns down from $48 like the previous two occasions, it will suggest that bears are defending the level aggressively. That could keep the pair stuck inside the triangle for a few more days. The bullish setup will invalidate on a break below the support line.

DOGE/USDT

Dogecoin (DOGE) bounced off the 20-day EMA ($0.07) on Aug. 7, indicating that bulls are defending the moving averages with vigor. However, the long wick on the Aug. 8 candlestick suggests that bears are selling at higher levels.

DOGE/USDT daily chart. Source: TradingView

The flattish moving averages indicate a balance between supply and demand but the RSI in the positive territory suggests a minor advantage to the buyers. If bulls push the price above the overhead resistance at $0.08, it will complete the ascending triangle pattern. The pair could then start a rally to the psychological resistance at $0.10.

Conversely, if the price turns down from the overhead resistance, the DOGE/USDT pair could stay inside the triangle for a few more days. The bears will have to sink the price below the trendline to invalidate the bullish setup.

Related: Metaverse housing bubble bursting? Virtual land prices crash 85% amid waning interest

DOT/USDT

Polkadot (DOT) turned down from the overhead resistance at $9 on Aug. 6 but the bulls did not cede ground to the bears. They resumed their purchase on Aug. 7 and pushed the price above the overhead resistance on Aug. 8.

DOT/USDT daily chart. Source: TradingView

The 20-day EMA is sloping up and the RSI is in the positive territory, indicating that bulls have the upper hand. If buyers sustain the price above $9, the bullish momentum could pick up and the DOT/USDT pair could rise to $10.80 and later to $12.

Contrary to this assumption, if the price turns down and breaks back below $9, it will suggest that the breakout may have been a bull trap. The pair could then decline to the 20-day EMA ($8.07) and later to the 50-day SMA ($7.49).

MATIC/USDT

Polygon (MATIC) formed a Doji candlestick pattern on Aug. 7, which resolved to the upside on Aug. 8. This suggests that bulls are buying the dips to the 20-day EMA ($0.86).

MATIC/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI in the positive territory indicate advantage to buyers. The MATIC/USDT pair could rise to the overhead resistance at $1.02 where the bears may mount a strong defense.

If bulls do not give up much ground from $1.02, the likelihood of a break above it increases. The pair could then rally to $1.26 and then to $1.50. The first sign of weakness will be a break and close below the 20-day EMA. That could open the doors for a possible drop to $0.75.

AVAX/USDT

Avalanche (AVAX) broke and closed above the strong overhead resistance at $26.38 on Aug. 6, indicating the completion of the bullish ascending triangle pattern.

AVAX/USDT daily chart. Source: TradingView

The AVAX/USDT pair could rise to $33 and later to the pattern target of $39.05. While the upsloping moving averages indicate advantage to buyers, the RSI has risen into the overbought zone, suggesting a minor correction in the near term.

If bulls flip the $26.38 level into support during the next correction, it will signal a potential trend change. This positive view could be invalidated in the near term if the price turns down and breaks below the moving averages.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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Bonds

Fed reverse repo reaches $2.3T, but what does it mean for crypto investors?

Investors avoid risk assets during a crisis, but excessive cash sitting in financial institutions could also be good for the cryptocurrencies.

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Investors avoid risk assets during a crisis, but excessive cash sitting in financial institutions could also be good for the cryptocurrencies.

The U.S. Federal Reserve (FED) recently initiated an attempt to reduce its $8.9 trillion balance sheet by halting billions of dollars worth of treasuries and bond purchases. The measures were implemented in June 2022 and coincided with the total crypto market capitalization falling below $1.2 trillion, the lowest level seen since January 2021. 

A similar movement happened to the Russell 2000, which reached 1,650 points on June 16, levels unseen since November 2020. Since this drop, the index has gained 16.5%, while the total crypto market capitalization has not been able to reclaim the $1.2 trillion level.

This apparent disconnection between crypto and stock markets has caused investors to question whether the Federal Reserve’s growing balance sheet could lead to a longer than expected crypto winter.

The FED will do whatever it takes to combat inflation

To subdue the economic downturn caused by restrictive government-imposed measures during the Covid-19 pandemic, the Federal Reserve added $4.7 trillion to bonds and mortgage-backed securities from January 2020 to February 2022.

The unexpected result of these efforts was 40-year high inflation and in June, U.S. consumer prices jumped by 9.1% versus 2021. On July 13, President Joe Biden said that the June inflation data was "unacceptably high." Furthermore, Federal Reserve chair Jerome Powell stated on July 27:

“It is essential that we bring inflation down to our 2 percent goal if we are to have a sustained period of strong labor market conditions that benefit all.”

That is the core reason the central bank is withdrawing its stimulus activities at an unprecedented speed.

Financial institutions have a cash abundance issue

A "repurchase agreement," or repo, is a short-term transaction with a repurchase guarantee. Similar to a collateralized loan, a borrower sells securities in exchange for an overnight funding rate under this contractual arrangement.

In a "reverse repo," market participants lend cash to the U.S. Federal Reserve in exchange for U.S. Treasuries and agency-backed securities. The lending side comprises hedge funds, financial institutions and pension funds.

If these money managers are unwilling to allocate capital to lending products or even offer credit to their counterparties, then having so much cash at disposal is not inherently positive because they must provide returns to depositors.

Federal Reserve overnight reverse repurchase agreements, USD. Source: St. Louis FED

On July 29, the Federal Reserve's Overnight Reverse Repo Facility hit $2.3 trillion, nearing its all-time high. However, holding this much cash in short-term fixed income assets will cause investors to bleed in the long term considering the current high inflation. One thing that is possible is that this excessive liquidity will eventually move into risk markets and assets.

While the record-high demand for parking cash might signal a lack of trust in counterparty credit or even a sluggish economy, for risk assets, there is the possibility of increased inflow.

Sure, if one thinks the economy will tank, cryptocurrencies and volatile assets are the last places on earth to seek shelter. However, at some point, these investors will not take further losses by relying on short-term debt instruments that do not cover inflation.

Think of the Reverse Repo as a "safety tax," a loss someone is willing to incur for the lowest risk possible — the Federal Reserve. At some point, investors will either regain confidence in the economy, which positively impacts risk assets or they will no longer accept returns below the inflation level.

In short, all this cash is waiting on the sidelines for an entry point, whether real estate, bonds, equities, currencies, commodities or crypto. Unless runaway inflation magically goes away, a portion of this $2.3 trillion will eventually flow to other assets.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Crypto

Bitcoin price targets 8-week highs as Ethereum reaches $1.8K

Optimism and expectations increase around crypto markets, but U.S. inflation data looms large this week.
Bitcoin (BTC) looked to target…

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Optimism and expectations increase around crypto markets, but U.S. inflation data looms large this week.

Bitcoin (BTC) looked to target new August highs at the Aug. 8 Wall Street open as upcoming United States inflation data fueled sentiment.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

$25,000 next major BTC resistance

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit $24,246 on Bitstamp, its best since July 30.

The pair was within striking distance of its highest since mid-June at the time of writing, while traders and analysts scanned the charts for signs of resistance.

For on-chain monitoring resource Material Indicators, this came in the form of sellers at $25,000 and Bitcoin’s 100-day moving average (MA).

“Bear Market Rally is pumping ahead of this week's CPI report,” it wrote as part of its latest Twitter update.

An accompanying chart showed long signals still characterizing the daily chart, with the 100-day MA sitting at around $25,650.

Order book data from the largest global exchange Binance reinforced expectations of friction in that area, as sell liquidity was mounting around the $25,000 mark.

BTC/USD 1-day candle chart (Bitstamp) with 100-day MA. Source: TradingView

Running the show on risk assets was the Aug. 10 Consumer Price Index (CPI) print, with markets waiting to see if inflation in the U.S. had set a peak.

While this would notionally allow crypto some breathing space, commentators pointed out that the risk of a major stock market correction remained, with crypto still heavily correlated.

Moves by Larry Fink, CEO of the world’s largest asset manager BlackRock, exacerbated concerns that risk assets were simply in the midst of an extended bear market relief rally.

After last week's partnership with U.S. exchange Coinbase, Fink sold a tranche of more than 44,000 BlackRock shares this month, his first major sale since the months before the March 2020 COVID-19 crash. Concerns thus focused on whether Fink now knew something that the majority did not.

“I think the one thing that can push prices back down is the stock market having another major pullback,” trader and pundit Max Rager continued on the day.

“Outside, hard to see something putting as much selling pressure as we had with both the LUNA/3AC events.”

Rager argued that since the majority were expecting a trip to June’s lows or worse, this would no longer be what causes the market “max pain.”

Ethereum Merge could be “buy the rumor, sell the news”

Out of the top ten cryptocurrencies by market cap, it was not Bitcoin putting in the best daily or even weekly performance.

Related: Has US inflation peaked? 5 things to know in Bitcoin this week

Major tokens were headlined by Ether (ETH), Solana (SOL) and Polkadot (DOT), which delivered 24-hour returns of between 5% and 8.5%.

ETH/USD, amid ongoing speculation over the Merge and its consequences, reached $1,817 on Binance, marking its highest since June 9.

For on-chain analytics firm Glassnode, the good times could continue until the event itself, expected to be in September.

“There is little directional bias evident in Bitcoin derivatives markets. On the Ethereum side, however, traders are clearly holding a long bias, expressed heavily in options contracts centred in September,” it wrote about traders’ plans in the latest edition of its newsletter, “The Week On-Chain,” released on Aug. 8.

“Both futures and options market are in backwardation after September, suggesting traders are expecting the Merge to be a 'buy the rumor, sell the news' style event, and have positioned accordingly.”
ETH/USD 1-day candle chart (Binance). Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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