A Red Flag for HMSTR Airdrop

The much-anticipated Hamster Kombat (HMSTR) airdrop finally happened yesterday, September 26. In total, the Telegram tap-to-earn mini app distributed 60 million tokens to “CEOs” involved in playing the game.

However, according to many players, the HMSTR airdrop fell short of expectations, leading most to sell the token as soon as it launched. But what else is happening?

Lackluster Hamster Kombat Aidrop Force Sell-Offs, Players React

The HMSTR token launched on several exchanges at 12:00 UTC. While the cryptocurrency community speculated on the price earlier, it eventually started trading at $0.014.

However, within minutes, the HMSTR price dropped by 20% due to massive sell-offs. This performance is in contrast with the broader market, which saw prices increase notably. Currently, the Hamster Kombat price is $0.0069, representing a 30% decrease in the last 24 hours.

As the price plummeted, the volume surpassed $1 billion. Volume is an indicator of interest in a cryptocurrency. When it increases, there is a lot of buying and selling. A decrease, on the other hand, however, indicates otherwise.

Read more: 7 Best Exchanges To Buy and Sell Hamster Kombat (HMSTR) in 2024

But for HMSTR,  the rising volume plus the decreasing price is a bearish sign, as it indicates strength to the downward pressure on the token. If this continues, the price might continue to plunge.

Meanwhile, data from Coinglass shows that the token experienced a surge in derivatives volume. This notable rise indicates significant speculative activity around HMSTR. However, like the spot volume, rising derivatives interest alongside falling price is a bearish signal.

Besides this, many players expressed their disappointment in the HMSTR airdrop, which some said offered an average of $8. However, this outcome wasn’t surprising. Despite Hamster Kombat banning 2.3 million players from eligibility before the airdrop, the sheer number of participants remained large, diluting the rewards significantly.

HMSTR Price Prediction: Future Uncertain

While it might be too early to predict HMSTR’s price, the 5-minute chart shows that the cryptocurrency has found some stability around $0.0067 and $0.0069. Furthermore, the Relative Strength Index (RSI) hovers around the neutral 50.00 signal line.

This implies that the momentum around the Hamster token is relatively neutral. As such, the price might move in a seesaw manner in the short term. Should this be the case, the next level for HMSTR to reach could be around $0.0065.

Read more: Top 8 Hamster Kombat Alternatives in 2024

However, HMSTR’s price might experience a notable rebound if the selling pressure eases. Should buying pressure appear during this period, the value could jump toward $0.0080. It is also worth noting that Hamster Kombat has yet to respond to users’ displeasure as of this writing.