Humanity Protocol [H] has been trading within a consolidation range since recovering from a drop below $0.1.
After a period of sideways trading, H broke out of its range and surged to $0.19. In the process, the altcoin moved above both short‐ and long‐term moving averages, signaling strong upward momentum.
At the time of writing, H was up 39.72% on the daily chart at $0.19. Trading volume also jumped 681% to $133 million, while market capitalization crossed $400 million, reflecting significant capital inflows.
With this price rally, market participants appear to be positioning for an extended upside move.
Humanity Protocol pumps on speculative interests
After holding around $0.12 for a significant period, market participants jumped in to accumulate. A little demand witnessed on the 5th of March had a positive impact on price action, triggering a significant jump.
As a result, traders in Futures, especially short position holders, were forced to buy back their positions to avoid liquidation. Despite that, short positions liquidated exceeded $500k, the level last seen in early February.
A short squeeze exacerbated upward momentum, driving prices higher. This surge in futures activity saw increased participation in the derivatives market.
According to Coinglass data, Humanity Protocol’s Derivatives Volume surged 1385% to $473 million as of writing. At the same time, the altcoin’s Open Interest (OI) surged 57% to $103 million.
With OI and volume surging in tandem, it signaled higher participation, with traders taking both short and long positions.
Meanwhile, the altcoin’s Long Short Ratio jumped to 1.05, largely driven by Binance Top Traders. However, the ratio remained below 1 for Binance and OKX’s other accounts, signaling market indifference.
The prevailing sentiment showed that the demand for longs was largely driven by Binance whales, who anticipate further gains. However, small-scale traders on Binance and OKX took short positions, indicating their bearishness.
Is H’s upside momentum sustainable?
Humanity Protocol broke out of the downtrend as demand recovered across the spot and Futures markets. For that reason, the upside momentum strengthened, as evidenced by momentum indicators.
For starters, the altcoin’s Stochastic Momentum Index (SMI) climbed to 34, at press time, a level last seen in mid-February. The continued rise in this indicator showed rising buyer dominance in the market.
However, SMI showed a major prevailing risk in the market. Although the indicator is up significantly, it is still well within the bearish zone, suggesting a strong seller presence.
In fact, the Accumulation and Distribution Volume (ADV) indicator showed buyer dominance. The Average A/D surged to 4.6 million while volume rose to 5.3 million.
The trend quickly shifted on the 6th of March, with the volume and average A/D both dropping to pre-breakout levels. This suggested that profit takers stepped in as buyers slowed, leaving the market vulnerable to a pullback.
Therefore, the next move depends on which side is stronger. If buyer momentum holds, H will flip $0.2 and target $0.24.
On the other hand, continued profit realization could see the pressure to the downside overwhelm, leading to a retrace to $0.4, where EMA50 sits.
Final Summary
- Humanity Protocol [H] broke out, hiking to a high of $0.19 before retracing to $0.17 at press time
- H surged as short sellers got squeezed, causing higher demand in the futures market.
