Over the last week, Hamster Kombat [HMSTR] has witnessed a significant downtrend on shorter timeframes, resulting in a 30.7% decline since September 28th. Recent price action indicates a consolidation above the $0.004 support level.
Despite holding a market capitalization of $300 million, the trading volume for this token was below average in the previous trading session, signaling the need for a shift before any bullish reversal can be anticipated.
Negative Market Trends and Formation of Trading Range
The price drop below $0.0046 on Thursday altered the hourly market structure to a bearish one. The overall trend during the past week has also been bearish, with the OBV failing to surpass a local high, a crucial indicator for potential upward movement.
For the past couple of days, the RSI has hovered around the neutral 50 level, reflecting market indecision. A potential turnaround for Bitcoin [BTC] from the $60k support threshold could inject new life into the altcoin market.
Such a scenario might embolden HMSTR bulls to enter the market in larger numbers. A breakout above $0.0049 and subsequent retesting could create a viable buying opportunity, aiming at the sequence of lower highs that Hamster Kombat has registered over the previous week.
Increasing Optimism Surrounding Hamster’s Prospects
Within the last 12 hours, Open Interest surged from $44.7 million to $49.58 million as the HMSTR token tested the $0.0045 support level and rebounded by 2%. The positive funding rate suggests a prevailing bullish sentiment among speculators.
Conversely, the spot CVD exhibited a consistent decline, implying that Hamster Kombat is likely to trade within a range of $0.0045 to $0.00494 in the coming days.
Disclaimer: The views expressed in this content are personal opinions and should not be construed as financial, investment, or trading advice.