Hamster Token Price Movements: Buy and Sell Dynamics

Hamster Token (#HAMSTER) follows the basic rules of supply and demand, like most cryptocurrencies. When people buy a lot of the token, demand increases, pushing the price up. Conversely, when many try to sell, the supply increases, and the price tends to drop.

However, you may notice that after a buying spike, the price sometimes stabilizes or even falls. This happens because:

Profit-taking: Early buyers may sell after the price rises, increasing supply.

Market exhaustion: Once demand slows, fewer buyers are willing to pay high prices, leading to a price drop.

This pattern of price fluctuations is not unique to Hamster Token but is common across most cryptocurrencies, especially those with smaller market caps. Understanding these dynamics can help you make better trading decisions.