Hamster Kombat (HMSTR) Bearishness Intensifies: Here's Why the Token Is Likely to Continue to Fall
After the airdrop and the start of trading on crypto exchanges, Hamster Kombat did not live up to expectations. Despite the initial interest in the project, the active sale of HMSTR tokens led to their significant depreciation last week.
Khomyak failed to hold investors' interest
On September 26, Hamster Kombat distributed 60 million tokens to its players, after which the coins appeared on cryptocurrency exchanges at a price of $0.014.
However, the massive sell-off has quickly driven the token's value down, with it down 50% in the last six days and down 11% in the last 24 hours at the time of writing.
Since the airdrop, HMSTR has faced pessimistic sentiment. This is confirmed by the negative weighted sentiment. The indicator reflects the overall mood of the market, and its negative value indicates that most of the discussions about the asset on social media are related to fear, uncertainty, and doubt. It is currently at -0.16. This may be a sign of further price decline.
Weighted Sentiment on HMSTR. Source: Santiment
The coin has already lost half of its value in just a week. However, futures traders are still optimistic. According to Coinglass, the HMSTR funding rate has remained positive since the start of trading. This mechanism ensures a balance between long and short positions in the perpetual futures market. Positive rates indicate that long contracts dominate and that the contract price is higher than the spot price. This means that traders are buying the coin with the expectation of selling it at a higher price.
However, many of these long positions have turned out to be unprofitable as liquidations continue. Since September 26, $9 million worth of long positions have been liquidated due to the token price drop.
HMSTR Total Liquidations. Source: Coinglass
HMSTR Forecast: Further Declines Expected
The hourly chart shows that the token may continue to fall. The Directional Movement Index (DMI), which measures the strength of the trend, confirms this bearish forecast.
At the time of publication, the positive directional indicator (blue) is below the negative one (red). This position most often promises a decline in price and indicates the dominance of sellers. If the bears maintain control, they can push the price of HMSTR down to a low of $0.0010.
HMSTR Price Analysis. Source: TradingView
However, if the market sentiment turns bullish, the price could jump by 59% and reach the resistance level at $0.0075.
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