Here’s why Humanity Protocol’s (H) market is shaky despite 10% rally

Humanity Protocol recorded the second-highest gains among the top 100 cryptos in the last 24 hours.

According to CoinMarketCap, H’s price rallied by more than 10% at a time when most altcoins struggled to extend their gains this week. In fact, while their weekly gains amounted to 31%, their monthly gains were as high as 198%.

Why is Humanity Protocol up today?

Humanity Protocol’s (H) rally was driven by its spot volume, with the same spiking by more than 148% at press time. Of this volume, about 81% came from the Binance Alpha market, which also had the highest liquidity score of 565.

As far as perpetual futures contracts are concerned, Binance maintained its lead on that front too. However, OKX traders had a significant share too.

Apart from volume, there has been social buzz and institutional interest around the token following a potential governance shift. This on the heels of the protocol’s decision to roll out a new roadmap for the year 2026.

That’s not all either as the number of holders has been on the rise since 18 December. With a market cap of $470 million, these holders stood at 31.26k.

Also, according to Coinglass, the Open Interest (OI) exceeded $100 million over the last 24 hours, as per CoinGlass data.

Hence, the question – What does the price structure tell us about H’s latest rally?

H’s price clears 3-week consolidation 

On the price charts, the altcoin broke from a sideways market that had lasted for over 3 weeks. H was bouncing between $0.1507 and $0.1855, which were the support and resistance levels, respectively.

The momentum in the altcoin’s latest move was evidenced by the Trend Strength Index (TSI), with the same hinting at more upside. Additionally, the MACD was green, even though the faint bars alluded to a fall in momentum.

At the time of writing, the price rally was weakening though, with $0.2074 emerging as the zone where sellers lay. These sellers have been preventing H from trending higher, despite the altcoin’s successful retest.

Breaking above this level would extend the rally. Unfortunately, the altcoin’s holder activity suggested that might not even transpire.

Why is the rally under threat?

According to Etherscan, holders have been moving their tokens to different exchanges like Bybit, KuCoin, and Gate.io. The largest and the latest transfer was 161,645 H deposited to Gate.io’s address.

Other transfers averaged over 40k H tokens. Cumulatively, these transfers implied that traders might be locking in their profits after the short rally. These transfers also fueled sell pressure, explaining why H was unable to sustain its uptrend.

Finally, the upcoming token unlock of about 105 million H tokens on 25 January further added to why the rally was shaky. A hike in circulating supply would test the demand for the altcoin after December’s unlock was absorbed with ease.

However, a repetition of December’s absorption is not guaranteed. All these factors together may be why the rally is at the risk of stalling right now.

Final Thoughts

• H rallied by 10% in 24 hours, but its momentum has been shaky lately.
• Humanity Protocol’s market trend now under threat due to profit-taking and upcoming token unlocks.