Investor excitement peaked for Santos FC Fan Token [SANTOS] on October 28th, as it experienced intraday gains exceeding 100% following a significant listing declaration.
Binance broadened its futures trading selections with the launch of the SANTOSUSDT Perpetual Contract on Binance Futures, providing traders with up to 75x leverage. This launch offered token holders a fresh avenue for engaging in trading activities.
For those who may not be familiar, the Santos Token is a fan-focused token affiliated with the Brazilian football club Santos FC.
It was established through a partnership with Binance’s Fan Token platform.
SANTOS’ price performance
The listing drove SANTOS to reach a peak of $8.3, its highest value since late March. Presently, the price has stabilized at $5.1.
According to data from CoinMarketCap, this translated to a daily increase of more than 50% for the coin.
Additionally, over the last 24 hours, trading volume surged by 5000%, showcasing a notable surge in activity and investor interest.
This upsurge subsequently led to a rise in the token’s market cap to $29.05 million, representing an approximate increase of 60%.
Could a retracement be imminent?
To evaluate the potential future of SANTOS crypto, CryptoCrypto conducted a detailed analysis of its daily chart. The analysis discovered that the Relative Strength Index (RSI) had reached 77.72, firmly placing it in the overbought region.
This heightened RSI level typically indicates that the asset may encounter corrective pressure in the short haul.
Furthermore, the Chaikin Money Flow (CMF) verified a surge in profit-taking maneuvers among market participants.
At the time of reporting, the indicator was resting below the zero mark at -0.31, suggesting that sell-offs were outweighing buying interest.
Meanwhile, the $5.5 level remained a crucial hurdle that could potentially initiate a price downturn. Earlier this month, the token encountered a similar negative response at this level, triggering declines that breached the $3.6 support zone.
Furthermore, the latter support level is crucial for sustaining the token’s bullish momentum. Failure to do so could expose SANTOS to increased downward pressure, possibly pushing the price towards the $2.5 region.
The surge of fan-based cryptos with SANTOS
Although the announcement propelled SANTOS as the top performer among fan-based cryptocurrencies in the past 24 hours, these gains were not isolated events.
Other fan tokens, such as Alpine F1 Team Fan Token [ALPINE], Spain National Fan Token [SNFT], S.S. Lazio Fan Token [LAZIO], and FC Porto Fan Token [PORTO], also witnessed significant double-digit upticks.
Noteworthy is the fact that, at the time of reporting, SANTOS stood as the second most sizable fan token based on market capitalization, trailing closely behind the Paris Saint-Germain Fan Token [PSG].
As fan tokens continue to seize the interest of cryptocurrency enthusiasts, this segment seems to be emerging as a distinct niche within the broader digital currency market.
Therefore, the question arises: Could fan tokens emerge as the next trending category, akin to meme coins and AI-focused tokens? Only time will unravel the answer.
Their enduring value will hinge on their ability to consistently engage with and provide value to their communities in a sustainable manner.