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Hamster Kombat (HMSTR) Hits All-Time Low – Signs of Reversal on the Horizon

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • HMSTR declined 95%, reaching an all-time low today.
  • The price discovery phase continues with a slowing downward momentum.
  • Potential reversal signaled by oversold RSI and Fibonacci levels.

Since its launch, Hamster Kombat (HMSTR) has faced significant price volatility, experiencing sharp declines and occasional spikes.

Despite reaching an all-time low, there are signs that downward momentum is slowing, hinting at the potential for a reversal.

HMSTR Price Analysis

Since its launch, the HMSTR price has been in a downtrend, peaking at $0.38 on July 31 and plummeting to $0.012 by Sept. 13, culminating in a 95% decline.

By Sept. 21, HMSTR had reached $0.088 at the resistance of a descending channel, but the price gradually declined to $0.063 by Sept. 24, still holding above key support. 

After the Binance listing, HMSTR spiked 1,658% to $0.0178 in the first hour before declining to $0.0060. The downtrend proceeded to its all-time low of $0.0037 today, Oct. 17, since the Binance listing price. 

HMSTR price analysis
HMSTRUSD at all-time low | Credit: Nikola Lazic/TradingView 

With HMSTR still in its price discovery phase and attempting to look for support, a bullish reversal could soon occur.

The downward momentum appears to be slowing down, and although there are no signs of a reversal, the room for further decline could be limited. 

HMSTR Price Prediction

Looking closer at the 4-hour chart, we can see that HMSTR formed another descending channel following its price drop.

However, analyzing the wave structure, we spot a five-wave pattern to the downside that is completed today or is near completion.

Today’s low was just slightly lower, if not the same as on Oct. 10. Measuring the length of its last decline since 14, we can see that it came to the 0.618 Fibonacci extension level. 

The lengths of these downtrends after minor recoveries are getting smaller, indicating that the momentum is slowing down. In addition, the Relative Strength Index (RSI) is at the oversold zone, hinting at a potential reversal. 

HMSTR price prediction
HMSTRUSD momentum slowing down | Credit: Nikola Lazic/TradingView 

Although there are still no price action signs of a reversal, we can anticipate it. Should the price make a five-wave recovery to its prior high of $0.0046, it could be the first indication of this anticipated reversal. 

In that case, the second strong confirmation would be if HMSTR kept a higher low on the following retracement.

Only after these two waves can we have a sound conviction in the coming reversal, as the overall structure remains bearish until then. 

 

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.
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