Hamster Kombat (HMSTR) Approaches Oversold Levels — Trend Clarity Still Lacking

Key Takeaways

• Hamster Kombat price is down for five straight days, falling from $0.0029 to $0.0024 as of May 15.
• The altcoin is nearing oversold on the RSI indicator, though the trend remains uncertain.
• Support is strong at around $0.0023, while resistance at around $0.0028 suggests likely short-term consolidation.

The Hamster Kombat (HMSTR) price has recorded five consecutive daily bearish candlesticks since Sunday, May 11. This decline has pulled the price from a local high of $0.0029 to its current price of $0.0024.

Following this run, Hamster Kombat is approaching the oversold point, which typically should lead to a bullish reversal.

However, recovery may not be immediate, as key indicators suggest the overall trend for the altcoin remains unclear.

HMSTR Likely to Consolidate

Between Feb. 27 and May 10, Hamster Kombat’s price traded within an ascending parallel channel. This pattern ensured that the cryptocurrency’s market value climbed from a swing low of $0.0016 to a swing high of $0.0028.

However, as of this writing, the altcoin has broken below the channel’s upper and lower trendlines. According to CCN, the decline was caused by a decline in buying momentum.

For instance, the Relative Strength Index (RSI) reading rose to 65.78 on Saturday, May 10, as HMSTR climbed to $0.0028. However, as of this writing, the RSI has fallen to 38.10, indicating that the momentum around the Hamster Kombat price has become bearish.

Besides measuring momentum, the RSI also tells if an asset is overbought or oversold. Readings above 70 indicate an overbought point, while those below 30 mean the asset is oversold.

Therefore, the current reading indicates that HMSTR’s price is nearing the oversold level.

No Rebound In Sight

Despite nearing this key threshold, Hamster Kombat has not yet shown signs of a rebound, according to signals from the In/Out of Money Around Price (IOMAP) indicator.

The IOMAP identifies support and resistance levels by analyzing the volume of coins held in unrealized profits or losses. The larger the volume of coins in profit, the stronger the support level.

Meanwhile, a higher volume of unrealized losses indicates stronger resistance. Currently, HMSTR is at a critical juncture, balancing between key support and resistance zones.

The cryptocurrency finds strong support around $0.0023, with nearly 7 billion coins in profit at that level. Meanwhile, resistance looms near $0.0028, where over 4 billion HMSTR are lost.

Given this position, HMSTR’s price is likely to consolidate between $0.0023 and $0.0028 in the short term.

HMSTR Price Analysis: Warning Signs Emerge

On the 4-hour HMSTR/USDT chart, we observed that the red line of the Supertrend has climbed above the price. This position suggests that the resistance above Hamster Kombat’s price appears stronger than the support.

A look at the Chaikin Money Flow (CMF) also validates this trend. At press time, the CMF reading had fallen below the zero signal line, indicating that selling volume outpaced buying pressure.

If sustained, HMSTR’s price might decline to $0.0021. In a highly bearish scenario, Hamster could drop as low as $0.0019.

Alternatively, increased demand for the cryptocurrency could send the CMF back above zero. If that were to happen, HMSTR might rise toward $0.0030.