Hamster Kombat chart pattern points to a major comeback

Despite the Hamster Kombat (HMSTR) token currently being in a deep bear market, recent chart patterns and technical indicators suggest the potential for a rebound in the near future.

Hamster Kombat’s Decline

The token has experienced a significant 80% drop from its all-time high, reducing its fully diluted valuation to $268 million. This decline mirrors the trend seen in other Telegram-based tap-to-earn tokens like Notcoin, Catizen, and Pixelverse, which also experienced sharp crashes after their initial hype. A major factor behind these downturns is the sell-off behavior typically seen in “to earn” tokens, where holders cash out, leading to price declines. Additionally, highly anticipated projects often face challenges in maintaining momentum, as seen with Axie Infinity (AXS), which lost a substantial user base after its peak in 2021.

Currently, Hamster Kombat is experiencing a sharp decrease in user engagement, with a significant drop in its active user base and social media growth. DappRadar reports only 118,000 unique active wallets on the network in the past seven days. Moreover, Rektology states the platform has lost over 260 million users recently. If the user loss continues, there are concerns that the token could face delistings from multiple exchanges. Additionally, the YouTube channel has plateaued at 36.9 million subscribers, and daily trading volume has fallen drastically—from over $100 million to just $34 million.

Potential for Rebound

Despite these challenges, there are technical signals that suggest the HMSTR token may be bottoming out and could soon see a price rebound. On October 25, the downward momentum slowed, and key indicators such as the Relative Strength Index (RSI) and the Stochastic Oscillator are showing signs of upward movement.

Most notably, Hamster Kombat has formed a falling wedge pattern, a common technical chart pattern that often signals a reversal. The falling wedge suggests that the token could potentially rise to $0.0053, which was the high reached on October 7—a 100% increase from its current levels. If this bullish scenario unfolds, HMSTR could experience a strong recovery.

Risk of Further Decline

On the flip side, if the price of HMSTR falls below its all-time low of $0.00228, the bullish outlook would be invalidated. In that case, the price could drop further to $0.0015, leading to even more significant losses for investors.

While Hamster Kombat is currently facing a tough market, the technical setup suggests that a rebound could be possible, especially with the falling wedge pattern indicating a potential reversal. Investors should watch closely for signs of price stability above $0.00228 and a break above the $0.0053 level to confirm the rebound. However, given the volatility and risks associated with “to earn” tokens, caution is advisable, and market conditions should be monitored closely.