Hamster Kombat (HMSTR) Price up 60% in November — Reaction at Support Could Define Trend

Key Takeaways

• Hamster Kombat (HMSTR) broke out from a descending resistance.
• The HMSTR price has increased by 60% since the start of November.
• Has HMSTR completed its correction, or is this just a relief rally?

The HMSTR price fell sharply right after its launch, reaching a new all-time low price on Nov. 3. However, it started a rally afterward, breaking out from its corrective trend line six days later.

With this breakout in mind, it is worth analyzing the HMSTR price movement to see if the increase will lead to new highs or if it is simply a relief rally.

HMSTR Price Breaks Out

The four-hour time frame shows that HMSTR had fallen under a descending resistance trend line since Oct. 5. The downward movement led to a low of $0.00225 on Nov. 3. The price began upward afterward and broke out from the resistance trend line on Nov. 9.

The breakout catalyzed a 140% price increase and led to a high of $0.00625. However, the HMSTR price failed to sustain the increase, created a lower high (black icon), and has fallen since.

Technical indicators also show weakness. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling. The RSI is decreasing below 50, while the MACD has made a bearish cross (black circle).

So, the downward movement may continue. Furthermore, the number of Hamster Kombat monthly users  has fallen by 260 million players since its July high.

Where’s the Next Support?

The two-hour HMSTR chart shows the price has completed a five-wave increase (white) since the aforementioned all-time low. If the count is accurate, HMSTR completes an A-B-C structure (black).

A likely level for the correction to end is at the 0.618 Fibonacci retracement support level of $0.00379.

However, if the decline is impulsive, the HMSTR price will not bounce at the support level but will break down.

As a result, the reaction to the $0.00379 area will be key in determining if the future trend is bullish or bearish.

Future Trend Unclear

While the HMSTR price showed positive signs, breaking out from its descending resistance trend line, the failure to sustain this trend raises questions about the viability of the positive November trend.

The wave count suggests that HMSTR is completing an A-B-C correction.

Once it reaches the $0.00379 support, the reaction can determine the direction of the future trend.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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