Hamster Kombat burst into the trading scene in September after a long-running airdrop farming event. Despite all of the hype leading up to the launch
Hamster Kombat (HMSTR) has been making waves in the crypto space since its highly anticipated launch in September. The token, which was touted as one of the biggest airdrop events of the year, had a lackluster debut, sparking disappointment among investors.
After being listed at around a $500 million valuation, the HMSTR token faced the brunt of the bear market, losing roughly 43% of its value. This decline, however, might be nearing its end, according to one analyst, who anticipates a bullish future for the HMSTR token.
Crypto analyst Saeed Sheikh spotted an opportunity in the misfortunes of others. In an analysis posted on TradingView, Sheikh highlights bullish indicators for the Hamster Kombat price.
As per the crypto analyst’s analysis, the recent decline in the Hamster Kombat price has pushed the altcoin into oversold territory. This explains the sharp drop in the HMSTR token’s price over the last month. However, it is also bullish for the price, especially a popular altcoin like Hamster Kombat.
When an asset enters oversold territory, it usually indicates that it is primed for a recovery. The logic behind this is that the sellers will have largely sold their holdings, leaving mainly holders. This, in turn, establishes support for the price, ultimately creating a bounce-off point for the next recovery.
If this scenario holds true and the Hamster Kombat sellers are nearing exhaustion as it enters oversold territory, then HMSTR could be forming support at around the $0.005 price level. In this case, it would serve as the bounce-off point for the next rally to recover its losses from September.
According to the crypto analyst’s chart, the Hamster Kombat price could more than double from here if it plays out as anticipated. There are multiple major targets to hit and cross as they carry the most resistance for the altcoin from here.
The first target to hit is $0.009116 at the 0.382 Fibonacci level. This is the initial resistance and also arguably the easiest to conquer from here. Next is the $0.011 target at the 0.236 Fibonacci level. Finally, there’s the $0.014149 target, which is the strongest resistance. As the price increases, so does the resistance from bears.
Given the current position of the Hamster Kombat price at the time of this writing, hitting the very last target at $0.014149 would indicate a more than 100% increase. However, this move is also largely dependent on how the Bitcoin price sways the crypto market, according to the crypto analyst.
