The cryptocurrency market recently witnessed significant activity surrounding Humanity Protocol (H), which experienced a dramatic rally of 50% to hit a monthly high of $0.21, only to retrace to $0.17 at press time. This surge demonstrates the volatility and investor interest in this altcoin, raising questions about its next move, especially in light of an upcoming $15 million token unlock.
What Triggered the 50% Rally?
Humanity Protocol’s price hike can be attributed to immense trading momentum, coupled with strong buyer demand across both Spot and Futures markets. As per CoinGlass reports, trading volume surged by 121% to $215 million, while the token’s market cap rose to $473 million. Futures activity saw impressive growth, with open interest climbing 31% to $127 million. Moreover, derivatives volume skyrocketed by 216.68%, reflecting heightened participation.
Notably, inflows into the Futures market grew significantly, with net flows increasing by 501.54% to $7.54 million. On the Spot market side, exchange outflows totaled $15.67 million compared to $14.65 million previously, signaling aggressive spot accumulation by buyers.
A Looming Challenge: The $15M Token Unlock
However, the surge in Humanity Protocol’s price may face a crucial test as the market anticipates a significant cliff unlock. Between December 22nd and 29th, approximately 105 million H tokens worth $15.29 million will be released into circulation, with the peak unlock set for December 25th, according to Tokenomist data.
Token unlocks typically lead to an increase in supply, thereby exerting downward pressure on the price if buyer demand fails to match. This means Humanity Protocol may experience short-term bearish trends, with potential declines to $0.12 or even $0.10 as support levels. However, if demand can withstand the supply shock, the altcoin could stabilize or aim for new resistance levels such as $0.27 or $0.30.
Technical Indicators Reflect Market Nervousness
The altcoin’s Relative Strength Index (RSI) surged to 74 before retreating to 63, highlighting an ongoing tug-of-war between buyers and sellers. Similarly, the Directional Movement Index (DMI) fluctuated between 44 and 37, underscoring the market’s uncertainty.
Ultimately, the resolution of this intense competition will dictate the next move for Humanity Protocol. If buyers maintain their momentum, the price could revisit the $0.20 mark and aim for higher targets. Conversely, increased selling pressure due to the token unlock might lead to a bearish turn.
Invest in Crypto Safely
For crypto enthusiasts looking to stay ahead, it’s crucial to adopt strategies that include not just tracking market movements but also managing risks effectively. For beginners, tools like the Ledger Nano X hardware wallet (available here) can be an excellent choice for securing cryptocurrency investments.
As always, remember that the cryptocurrency market is volatile and investments carry inherent risks. Conduct thorough research or consult a financial expert before making decisions.
