HMSTR price plunges 25% in a day, losing hold of its key support at $0.0011

Selling pressure spikes big, as 131M users begin offloading free tokens.

Hamster Kombat (HMSTR) price has dropped sharply on Thursday, losing over 25% in a day and falling below a key support level at $0.0011. The token, which is known for its rapid price movements, had been on a strong run recently, but the selling pressure seems to have intensified.

As of writing, HMSTR is trading at $0.001072, down 26% in the past 24 hours. The token hit a high of $0.003 earlier this week, but it has since lost more than two-thirds of its value.

So, what went wrong for HMSTR and could the token recover? Here’s a breakdown.

Why Did HMSTR Price Fall So Sharply? Several factors seem to have contributed to the steep fall in Hamster Kombat token price.

Firstly, a massive influx of tokens from airdrops and large wallet dumps has overwhelmed buyers, triggering a spike in sell-offs.

Secondly, with 131M users on board, many are now focused on offloading their free tokens, further increasing the selling pressure.

Finally, insider wallet dumps and fading tap-to-earn hype have fueled panic among traders, leading to a sell-off.

Hamster Kombat (HMSTR) Price Analysis

The token is now in a crucial phase as it p attempts to stay above the 9-day SMA. A break below this level could open the door for further losses toward the 24-hour low of $0.001045.

On the other hand, if buyers manage to push the token back above the 24-hour high of $0.00143, then it could pave the way for a return to the 9-day SMA.

A recovery to $0.002 in the short term seems unlikely without a significant shift in sentiment or ecosystem development. However, if the token manages to stabilize above $0.001, then it could slowly begin to recover.

Next Key Levels To Watch

Support:

$0.00095 (psychological level)

$0.0008 (24-hour low)

$0.0007 (Fib level)

Resistance:

$0.00143 (day’s high)

$0.0016 (previous support)

$0.002 (psychological level)

Where Is The Token Headed Next?

Overall, the token is still in a bearish trend, and it may see further downside in the near term. However, if the token manages to stabilize and find support, then it could start to recover.