Hamster Kombat (HMSTR) has witnessed a substantial increase in its price as institutional investors stack up.
Among the biggest moves of this trend, DWF Labs removed 156.44M HMSTR, or around $654,000, from exchanges in the past hour. The large-scale withdrawal is evidence of institutional interest in the token and its price increase.
Hamster Kombat Surges Nearly 120% in 24 Hours
Hamster Kombat has always been a strong performer across the past 24 hours. It has surged in value by nearly 120% in a single day and raced to new highs.
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At the latest update, HMSTR price has been increasing and is currently trading around $0.004182, witnessing an astonishing hike from recent lows. On the back of the strong upward momentum seen in the past day, the token made an intraday high of $0.004729.
The 24-hour trading volume of HMSTR has risen substantially over this sharp price move, reaching just under $585.9 million. This is usually seen as a sign of healthy investor interest in a token. When this happens traders become hungry to ride the bull market.
Moreover, HMSTR’s market cap has reached over $270 million, thus making it one of the cryptocurrencies to watch that is steadily growing in the market.
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For an institution like DWF Labs to move that much volume of tokens off of exchange suggests that HMSTR will either continue to appreciate in price or feel compelled to back off its stated launch date.
Moving these tokens into less liquid, more secure offline storage or dedicated institutional wallets indicates a longer-term investment horizon. It also shows a decrease in liquidity for use in selling in the near future. This is consistent with institutions taking action when they expect a long era of growth. As well as in the case of the asset they hold in their custody, part of a strategic plan.
The Technical Picture: Breaking Out of a Downtrend
From a technical analysis point of view, Hamster Kombat broke out of the downward trend and showed strong bullish signals. This is shown early in the 4-hour trading chart. Here HMSTR’s price fell sharply the day after its breakout above its established downtrend channel.
The token had been in a tight range from roughly $0.0025 to $0.003 before this surge. Its price held within a descending channel.
Looking at the current breakout, HMSTR’s price has quickly spiked over crucial resistance levels to trade over $0.0057. Bulls take the mantle, and this movement defines a drastically changed sentiment.
The price exploding out of the downtrend on the more visible exchanges with a nice handle attracted the attention of traders and institutional investors, who are viewing this as a signal of the potential for sustained upward momentum.
One such indicator of bullish momentum is the Average Directional Index (ADX), which currently reads 39.
An ADX above 25 is usually interpreted as a strong market trend, which is why ADX is a trend-strength indicator. HMSTR favors a strong trend, but the ADX is now headed south, indicating that the current momentum might change, as evidenced by the recent series of red candlesticks.
