Outside Source
Hamster Kombat token has remained in a deep bear market as one of the most anticipated airdrops turned into a disappointment.
Hamster Kombat (HMSTR) has dropped by over 80% from its all-time high, bringing its fully diluted valuation to $268 million.
Its crash has mirrored that of other popular Telegram tap-to-earn tokens like Notcoin (NOT), Catizen (CATI), and Pixelverse, which have dropped sharply from their record high.
One likely reason for this decline is that many “to earn” tokens often face sell-offs as holders cash out. Additionally, even highly anticipated networks tend to lose momentum over time. For example, Axie Infinity (AXS) saw a sharp drop in its user base after 2021, despite its initial success.
Data by DappRadar shows that the network had 118,000 unique active wallets in the last seven days. Its token, on the other hand, has dropped from $172 in 2021 to $5, costing investors billions of dollars.
The same trend is happening with Hamster Kombat whose number of users has dropped sharply in the past few weeks. According to Rektology, the platform has lost over 260 million users in the past few weeks. He expects that the token could be delisted from several exchanges if the trend continues.
Hamster Kombat’s YouTube channel is also not growing as it used to earlier this year. The number of subscribers has been stuck at 36.9 million for a while.
The daily trading volume for HMSTR has also fallen. CoinMarketCap data shows its 24-hour volume was $34 million, down from over $100 million a few weeks ago.
Hamster Kombat price could rebound
On a positive note, there are indications that the HMSTR token may be bottoming out, suggesting potential gains in the near term.
The downward momentum has slowed since Oct. 25, and indicators such as the Relative Strength Index and the Stochastic Oscillator are trending upward.
Notably, Hamster Kombat has formed a falling wedge pattern, a common reversal signal. This price action suggests the token could rebound to $0.0053, the high reached on Oct. 7, representing a potential 100% increase from current levels.
Conversely, a drop below its all-time low of $0.00228 would invalidate the bullish outlook and could push the price down further to $0.0015.
This article first appeared at crypto.news
