What's Next for Hamster Kombat? | Credit: Hameem Sarwar
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Key Takeaways
Hamset Kombat (HMSTR) broke out from a descending resistance trend line.
The price still trades under a key horizontal and Fib resistance level.
Can HMSTR sustain its increase and confirm the bullish trend reversal?
The MSTR price has decreased gradually since its launch on Sept. 26. The downward movement culminated with a new HMSTR all-time low of $0.0044 on Oct. 2.
However, the price has recovered, creating several higher lows and breaking out from a descending resistance trend line.
Let’s examine the HMSTR price action and see if it can sustain the breakout and recover some of the losses since the launch.
HMSTR Price Breaks Out
The hourly chart shows that HMSTR has broken out from the descending resistance trend line that existed since the launch.
This is a sign that the previous downward trend has ended. However, HMSTR failed to sustain its increase and was rejected by the $0.0052 horizontal resistance area (black icon).
Since the rejection, HMSTR has fallen and is approaching a short-term ascending support trend line (dashed) at $0.0048. If the price loses that support level, it could fall toward a new all-time low.
So, the hourly price analysis for HMSTR is bearish, suggesting that the price will fall to the ascending support trend line and potentially break down.
More Downside Ahead?
A closer look at the hourly time frame shows a head-and-shoulders pattern in place since the HMSTR all-time low. This pattern is considered bearish and usually leads to downward movements.
The pattern fits with the bearish indicator and price action readings. In this context, the previously outlined ascending support trend line acts as the pattern’s trend line.
A breakdown that travels the entire pattern’s height would take the HMSTR price to a new all-time low of $0.0041.
Conversely, a movement above the right shoulder high (red) at $0.0051 will invalidate this bearish outlook and could lead to a significant increase. At the current time, this seems unlikely.
Downtrend to Continue
Despite its breakout from a descending resistance trend line, the HMSTR trend is likely still bearish. This is accentuated by the failure to move above the $0.0052 horizontal area and creating a bearish head and shoulders pattern.
A breakdown from the pattern can trigger a decline to a new all-time low.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
