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

Viral Telegram win-win network Hamster Kombat is facing difficulties as its user base is decreasing and its token remains in a deep bear market.

Hamster Kombat (HMSTR) remains in a prolonged bear market, up 75% from its October low and down 72% from its all-time high. Its market capitalization fell from approximately $600 million to $254 million.

Hamster Kombat’s number of active users has dropped sharply, from 300 million before the airdrop to around 30 million today. Many users switched to other Telegram mini apps like TapSwap and Blum before their respective airdrops.

A Hamster Kombat spokesperson said in a statement that the network is working to re-engage its users ahead of the Season 2 launch. The spokesperson also stated that a sharp decline in users is expected.

Historically, gaming and other “lucrative” cryptocurrencies experience significant initial excitement, which often wanes over time. For example, Axie Infinity (AXS) once had thousands of daily users and saw its token reach a record high of $165. However, today the token is trading at $5.70 with its user base decreasing significantly.

Will the Hamster Kombat price recover?

HMSTR chart | Source: crypto.news

If the broader crypto bull run continues, there is potential for the HMSTR token price to rebound and double in value in the near term.

On the daily chart, HMSTR formed a falling wedge pattern between September 28 and November 4, enabling a strong recovery to its November 10 high at $0.0063.

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

There is a possibility that Hamster Kombat’s price will recover and reach $0.0118, which represents a 200% gain from its current level. However, this bullish view will be invalidated if the token falls below $0.0030.