Humanity [H] Reaches $0.39 ATH After 138% Surge – Will the Rally Continue?

Humanity surge image

Humanity [H] has made headlines with a remarkable surge of 138%, reaching an all-time high (ATH) of $0.39. This incredible uptick was primarily fueled by its expansion into the Sui ecosystem and migration to the Walrus protocol. Although there is potential for further growth toward $0.4, some signs of profit-taking may lead to a pullback toward $0.30 or lower. At the time of writing, the price stands at $0.34, along with significant increases in trading volume and market capitalization.

Key Takeaways

The expansion into the Sui ecosystem and migration to Walrus has generated significant investor interest and momentum.
Ongoing demand could drive the price to $0.4, but profit-taking risks could pull it back to $0.30 or lower.
Humanity [H] surged 138% to an ATH of $0.39 before pulling back to $0.34, with trading volume increasing by 512% and market cap rising by 118%.

Humanity Expands into the SUI Ecosystem

The recent rally of Humanity coin was triggered by its move into the Sui ecosystem and the transition from IPFS to Walrus. On October 22, the development team announced a partnership with Sui [SUI] using the Walrus protocol to bolster its infrastructure. This strategic shift involved transferring millions of user credentials on-chain within the Sui ecosystem, which is essential for establishing a secure, verifiable, and decentralized Human ID system. The initiative also aims to boost the number of user credentials from 10 million to 100 million by 2025.

Surge in Demand Following Recent Developments

Following the announcement of the partnership with SUI, there was a notable rush among investors to buy into the market. Reports indicate that demand for Humanity [H] surged, particularly among major holders. According to data from Nansen, Humanity experienced a noticeable positive shift in balances among prominent holders.

Humanity protocol top holders Source: Nansen

Over the last day, whale traders saw a net buy volume of 3.9 million tokens. Since the partnership began, top holders have accumulated 54 million tokens, reflecting a robust increase in demand.

Favorable Conditions in the Futures Market

As the market began to rally, many investors moved into the Futures market to better position themselves strategically. CoinGlass reported that Open Interest (OI) surged by 165% to reach $236 million, and derivatives trading volume skyrocketed by 1022%, hitting $1.9 billion at present.

H Derivatives Source: CoinGlass

Generally, a simultaneous increase in OI and volume indicates heightened trader engagement, as they take long or short positions. Importantly, capital inflows into the Futures market remained high over the last three days, amounting to $1.22 billion.

H Futures Flow Source: CoinGlass

Interestingly, Humanity observed $1.1 billion in Futures inflows, versus $1.05 billion in outflows, leading to a staggering 1798% increase in Futures Netflow to $54.48 million.

Profit-Taking Activity Intensifies

With such substantial price gains, it came as no surprise that many holders and speculative traders sought to cash in. According to Coinalyze, Humanity recorded 2.41 million in sell volume against 2 million in buy volume, resulting in a negative delta of 401k—an indicator of heightened spot selling activity.

Human protocol buy sell volume Source: Coinalyze

Moreover, trading activity across exchanges reflected this trend. CoinGlass showed that Humanity has maintained a positive netflow since the market rebound three days prior.

Humanity protocol spot netflow Source: CoinGlass

As of now, the netflow stands at $406k, a decline from the previous day's $1.04 million, indicating an uptick in inflows. However, waves of selling can exert downward pressure on prices, potentially leading to declines.

Will the Momentum Persist?

According to AMBCrypto, the rally in Humanity was driven by renewed interest from both whale and retail investors following the integration into the SUI ecosystem. Currently, the altcoin's Relative Strength Index (RSI) has risen to 75 and its Stochastic RSI is at 61, suggesting strong bullish momentum.

H RSI & Stoch Source: TradingView

These factors indicate that Humanity could be poised for further gains. If buying pressure remains strong, the price might retest its ATH and aim for $0.4. However, if profit-taking increases and buying momentum wanes, a decline to $0.30, with $0.20 as a critical support level, could be in store.