Hamster Kombat (HMSTR) Price Creates Bullish Pattern at Support—Bounce Looks Imminent

Key Takeaways

• Hamster Kombat (HMSTR) broke down from an ascending parallel channel.
• The HMSTR price trades inside the final support area before its all-time low.
• Can HMSTR bounce and prevent a breakdown, or are new lows likely?

Since its launch, Hamster Kombat has struggled, falling by over 80%. The decline culminated with a low of $0.0014 in February.

The HMSTR price regained its footing afterward, mounting a significant rally. However, that also proved short-lived since the price broke last week.

Since Hamster Kombat risks falling to another all-time low price, let’s look at the charts and see if the coin can prevent a breakdown.

HMSTR Price Breakdown

The daily time frame HMSTR analysis shows that the price has increased inside an ascending parallel channel since February.

These channels usually contain corrective movements, often leading to price breakdowns.

As expected, the HMSTR price fell after a rejection from the channel’s resistance trend line (black icon) in April.

It broke down from the channel in May before confirming it as resistance (black circle).

Today, the HMSTR price trades slightly above the horizontal and Fibonacci support at $0.002, the final support level before the all-time low.

It gains even more importance since it is both a Fibonacci and a horizontal level.

Even though the HMSTR price trades above support, technical indicators do not indicate a bullish trend reversal.

The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling, and neither has generated a bullish divergence.

So, the daily time frame analysis does not clarify whether the HMSTR price will break down or bounce.

Double Bottom Pattern

While the daily time frame analysis is bearish, the shorter-term six-hour one shows a double-bottom pattern.

The double bottom is a bullish pattern that often leads to trend reversals.

Furthermore, the pattern is combined with bullish divergences in the RSI and MACD (orange), increasing its legitimacy.

A HMSTR price breakout from its descending resistance trend line will confirm the bullish trend reversal.

If that happens, HMSTR could reach a high of $0.00255, targeting a Fibonacci and horizontal resistance.

Because of the conflicting long-term readings, it is unclear what HMSTR will do once it reaches the target.

Short-Term Rally Incoming

The HMSTR price bounced correctively after its all-time low, increasing inside a parallel channel.

While Hamster Kombat’s price broke down from its channel, the token has found support at a Fibonacci and horizontal level.

Because of its double-bottom pattern, a short-term rally is likely. However, it is unclear if that will lead to new highs.