Hamster Kombat (HMSTR) Up 16% from All-Time Low, But These Key Levels Could Block Further Gains

Key Takeaways

• The Hamster Kombat price has slightly recovered after hitting a new six days ago.
• Despite that, the cryptocurrency faces resistance between $0.0018 and $0.0019.
• HMSTR’s price is unlikely to continue recovering as momentum remains weak.

On Feb. 7, Hamster Kombat (HMSTR) hit an all-time low of $0.0014, nearly five months after its Token Generation Event (TGE), which many found disappointing.

However, the price has since rebounded 16%. With this bounce, HMSTR sits at $0.0017 amid an increase in trading volume.

Typically, the hike in trading volume and the price increase are bullish signs. Despite the recent rebound, on-chain analysis suggests the Hamster Kombat price may encounter resistance that could stall its rally.

These Major Hurdles Put Recovery at Risk

HMSTR’s drop to its all-time low earlier on meant that 100% of the cryptocurrency holders are in unrealized losses. While some are back with gains, the In/Out of Money Around Price (IOMAP) shows that this might only last for a short period.

The IOMAP indicator pinpoints key support and resistance zones by identifying potential buying and selling price levels. A high volume of tokens ‘out of the money’ indicates resistance, as holders may sell to break even.

Conversely, a large volume ‘in the money’ creates a buy zone, acting as support. According to IntoTheBlock data, the Hamster Kombat price faces resistance at two different price ranges.

The first resistance zone is around $0.0018, where 385 HMSTR addresses hold nearly 500 million tokens. The second is at $0.0019, with 25 addresses holding nearly 150 million tokens.

When combined, the volume at these regions outnumbers the token in the money between $0.0015 and $0.00017. Due to this disparity, HMSTR’s price is unlikely to continue its recovery.

HMSTR Price May Not Extend the Rebound

From a technical point of view, the Moving Average Convergence Divergence (MACD) is negative. The 12-day Exponential Moving Average (EMA) and the 26 EMA are at loggerheads but with negative readings as well.

This position indicates that the momentum around HMSTR is bearish. If this remains the same, then the gains the altcoin has had lately could be completely erased.

In addition, the Bull Bear Power (BBP) shows a drop below the neutral line, which indicates that bears have the upper hand.

If sustained, this could drive the Hamster Kombat price lower. Using the Fibonacci retracement levels, CCN observes that $0.0026 is a key level to watch since it is the upper-level resistance currently close to the HMSTR price.

Failure for the token to rise above this level could lead to capitulation. If that is the case, the cryptocurrency’s price might revert to its all-time low.

However, if HMSTR breaks above this resistance at the 0.236 Fib level, the trend might not be downward. Instead, the Hamster Kombat token might extend its rally—this time toward $0.0045.