Hamster Kombat price is in a bear market; are 2x gains possible?

Hamster Kombat, the viral Telegram tap-to-earn network, is facing challenges as its user base declines and its token remains in a deep bear market.

While the Hamster Kombat (HMSTR) has risen by 75% from its October low, it remains in a prolonged bear market, having fallen 72% from its all-time high. Its market capitalization has dropped from nearly $600 million to $254 million.

Hamster Kombat’s active user count has declined steeply, falling from over 300 million before its airdrop to about 30 million today. Many users have shifted to other Telegram mini-apps like TapSwap and Blum ahead of their respective airdrops.

In a statement, a Hamster Kombat spokesperson said the network is working to re-engage its users ahead of the Season 2 launch. The spokesperson also noted that the sharp drop in users was anticipated. 

Historically, gaming and other “to earn” cryptocurrencies experience significant initial hype, which often diminishes over time. For instance, Axie Infinity (AXS) once had thousands of daily users and saw its token reach a record high of $165. However, today, the token trades at $5.70, with a dramatically reduced user base.

Will Hamster Kombat price rebound?

HMSTR chart | Source: crypto.news

There is potential for the HMSTR token price to rebound, potentially doubling in value in the near term if the broader crypto bull run continues.

On the daily chart, HMSTR formed a falling wedge pattern between Sep. 28 and Nov. 4, leading to a strong recovery to $0.0063, its highest level on Nov. 10.

The token has now formed a bullish pennant pattern, characterized by a long flagpole and a symmetrical triangle. Historically, this pattern often leads to a strong bullish breakout.

There is a possibility that Hamster Kombat’s price could rebound and reach $0.0118, representing a 200% gain from its current level. However, this bullish outlook would be invalidated if the token falls below $0.0030.