Key takeaways
What triggered Humanity’s recent price surge and market activity?
Its expansion into the Sui ecosystem and migration to Walrus sparked investor demand and bullish momentum.
What could influence Humanity’s next price move?
Continued buyer dominance may push it toward $0.4, but rising profit-taking could lead to a retrace to $0.30 or lower.
Humanity [H] soared 138%, to a new all-time high of $0.39 before retracing to $0.34 at press time.
At the same time, its volume jumped 512% while market cap surged 118% to $382 million and $787 million, respectively.
But what triggered this uptick?
Humanity expands into the SUI ecosystem
Humanity coin rallied following its expansion into the Sui ecosystem and migration from IPFS to Walrus.
On the 22nd of October, the team announced a strategic partnership with Sui [SUI], leveraging the Walrus protocol to enhance its infrastructure.
As part of this move, millions of user credentials were transferred on-chain into the Sui ecosystem, supporting the creation of a secure, verifiable, and decentralized Human ID.
The collaboration also aims to scale the number of user credentials from 10 million to 100 million by 2025.
Demand soars with the recent development
Significantly, after Humanity and SUI announced their strategic collaboration, investors rushed into the market to accumulate.
In fact, H has experienced sustained demand from top holders over this period. According to Nansen, Humanity has recorded a positive balance change among the cohort.
Source: Nansen
Over the past day, for example, whales recorded a Net Buy volume of 3.9 million, continuing a trend that started on the 22nd of October.
Since then, Top Holders have scooped up 54 million tokens, signaling increased demand from the group.
Futures follow suit
Interestingly, as the market rallied, most investors rushed into the Futures market to strategically position themselves.
In fact, according to CoinGlass, Open Interest (OI) surged 165% to $236 million while Derivatives Volume jumped 1022% to $1.9 billion, at press time.
Source: CoinGlass
Typically, when OI and volume rise in tandem, it indicates increased participation with traders taking either shorts or long positions.
On top of that, capital inflows into the Futures market have remained elevated for the past three days, hitting $1.22 billion.
Source: CoinGlass
Notably, Humanity saw $1.1 billion in Futures Inflows compared to $1.05 billion in outflows. As a result, the altcoin’s Futures Netflow surged 1798% to $54.48 million, reflecting higher capital inflow.
Profit takers join the party
As expected, as the altcoin rallied to a new high, holders and speculative traders alike rushed to cash out.
According to Coinalyze, the altcoin saw 2.41 million in Sell Volume compared to 2 million in Buy Volume. As a result, it recorded a negative delta of 401k, a clear sign of increased spot selling.
Source: Coinalyze
Furthermore, exchange activity further echoed this selling trend. According to CoinGlass, Humanity has recorded a positive Netflow since the market rebounded three days ago.
Source: CoinGlass
At press time, Netflow was $406k, down from $1.04 million the previous day, suggesting higher inflows. Often, increased selling activity causes massive downward pressure on an asset, a prelude to lower prices.
Can the momentum hold
According to AMBCrypto, Humanity rallied as investors, both whales and retail, returned to the market following H’s integration into the SUI ecosystem.
As a result, the altcoin’s Relative Strength Index (RSI) rose to 75, at the time of writing, indicating increasing bullish momentum. Likewise, its Stochastic RSI surged to 61, further validating the trend’s strength.
Source: TradingView
Therefore, these conditions position H for more gains on its charts. If buyers continue to dominate, H will retest its ATH and eye $0.4.
However, if profit takers flip the coin while buyers’ momentum fades, we could see a retrace to $0.30, with $0.20 as critical support.
