Hamster Kombat could rebound by 13%, but first…

• HMSTR is positioned for an upward move as it trades within a key demand zone, setting the stage for potential gains. 
• If market conditions align, HMSTR could see an increase of 13.90%. However, there is still a risk of further declines.

Hamster Kombat [HMSTR] has faced steep losses since its debut. Last week, it dropped by approximately 40.34%, significantly reducing its market value.

In the last 24 hours alone, it declined by 3.94%, which could offer a strategic entry point for investors betting on a rebound.

HMSTR enters a demand zone: Will it hold sufficient buying pressure?

At press time, HMSTR has fallen into a demand zone, marked by recent declines of 3.94%. This zone, ranging between 0.5840 and 0.5722, appears on the 1-hour chart and is expected to host strong buying pressure.

If the buying activity at this level outweighs the current bearish market trend, HMSTR could potentially rise by up to 13.90%, aiming for a target of $0.006650. However, a more conservative target would be $0.006416.

Source: Trading View

Conversely, if HMSTR cannot sustain support within this demand zone, it risks further declines, possibly falling to $0.05542 or lower.

Mixed signals among market participants on HMSTR’s direction

According to the Parabolic SAR (Stop And Reverse), HMSTR is showing signs of turning bearish, as indicated by dots forming above the price bars—a trend currently observed in HMSTR’s trading pattern.

In contrast, the Relative Strength Index (RSI) presents a more optimistic outlook. After reaching the support trend line, the RSI has turned upward, suggesting that momentum may still be bullish.

The RSI evaluates market direction by measuring the speed and change of price movements. 

Source: Trading View

Based on this and current market conditions, AMBCrypto anticipates a potential upward trend, with the demand zone likely holding strong which is explained below. 

Open interest suggests a bullish outlook for HMSTR

Open Interest, a metric for tracking unsettled derivative contracts on an asset, can indicate market sentiment. A high open interest usually signifies that traders are increasing their positions, often reflecting a bullish price movement.

According to Coinglass HMSTR’s open interest has risen by 6.81% in the last 24 hours, climbing from $60.81 million to $17.37 million at press time.

This significant uptick indicates that traders are actively investing and betting on HMSTR’s price to escalate further from its present level.

However, if the overall market sentiment turns bearish, this could drive HMSTR’s price even lower.