The post Hamster Kombat Token (HMSTR) Dips 38%: Will This Popular Game’s Crypto Recover or Sink Further? appeared first on Coinpedia Fintech News
The Hamster Kombat token (HMSTR) entered the crypto scene with much anticipation, but its journey has been far from smooth. Launched on September 26, the token initially attracted widespread interest, especially among players of the popular tap-to-earn game Hamster Kombat.
However, within just six days, the token’s price has plunged by a staggering 38%, leaving investors and users wondering: will HMSTR recover, or is this the start of a prolonged downtrend?
What’s Causing HMSTR’s Price to Drop?
The token faced challenges even before it hit the market. Just days before its listing on major exchanges like Binance, an anti-cheating mechanism was suddenly introduced, disappointing many users. The hashtag #HMSTR trended on X for days, reflecting growing frustration. Despite a brief surge to $0.01004 after the launch, the price quickly plummeted, and HMSTR is now down by 46%, sitting at $0.005411. Adding to the woes, trading volumes have declined by 35%, with 24-hour volume falling to $157 million.
One major factor behind the price crash is the token’s extreme price fluctuation. The sudden decline in demand, combined with technical issues surrounding its release, pushed the token into a steep downtrend. User discontent, stemming from disappointing token rewards in the game, has also played a role, further contributing to the token’s bearish performance.
Will HMSTR Bounce Back?
Despite its poor showing, Hamster Kombat still holds some promise. It remains the 162nd largest cryptocurrency by a market cap of $348 million. Notably, only 64.38% of its total supply is in circulation, leaving room for future liquidity, which could help stabilize the price. On the technical side, indicators like the Relative Strength Index (RSI) show that the token is in the overselling zone. While this is usually a bearish signal, it could also mean that the downtrend is nearing its end, potentially leading to a price reversal.
However, other indicators like the Directional Movement Index (DMI) and Average Directional Index (ADX) suggest that the bearish sentiment around HMSTR remains strong for now. While a reversal is possible, it will likely take time and require a reduction in selling pressure before the token shows signs of sustained recovery.
Plus, Coinglass data also shows a 6.76% increase in open interest over the last 24 hours, which could signal renewed interest from traders betting on a recovery.
Conclusion
Hamster Kombat, despite being one of the most popular Telegram-based tap-to-earn games with over 300 million users, has had a rocky start with its HMSTR token. It dropped 38% since launch. While the short-term outlook remains bearish, long-term recovery is still possible. Investors should be cautious but keep an eye on market developments
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