Humanity Protocol (H) surged strongly thanks to recovery buying in both Spot and Futures, but the upcoming “cliff unlock” risk could quickly create selling pressure and erase some gains.
In recent sessions, H has fluctuated strongly along with a surge in trading volume, reflecting speculative capital entering the market. However, the market also has to consider the amount of tokens unlocking in December, a factor that often increases short-term supply and complicates the upward momentum.
MAIN CONTENT
H rebounded strongly, previously increasing 50% to $0.21 then retreating to $0.17.
Demand is clearly rising in Futures and Spot, as reflected in OI, derivatives volume, and negative spot netflow.
The risk of unlocking 105 million H ($15.29 million) could create short-term downward pressure.
H rebounded strongly along with increased trading volume.
H surged from the $0.14 zone to $0.21 before correcting to $0.17, in the context of strong trading volume and market cap reaching a short-term peak.
H recorded a notable rebound after escaping a weakening phase. The price rose about 50% from $0.14 to a monthly high of $0.21, then dropped to $0.17 at the time of recording.
During the same period, trading volume increased by 121% to $215 million, indicating a rapid increase in market participation. Market capitalization also reached a peak of $473 million, reflecting renewed demand in the short term.
Demand in Futures is increasing, with buyers in the lead.
H's Futures market heated up as Open Interest and derivatives volume surged, along with positive Futures netflow indicating that buyers are dominating.
Open Interest increased by 31% to a monthly high of $127 million, often reflecting an increase in new open positions. Derivatives Volume also surged by 216.68% to $1.26 billion, indicating increased 'rotation' and derivatives trading.
Capital inflow into Futures increased to $492.35 million from $484.82 million. Notably, Futures Netflow surged by 501.54% to $7.54 million, implying that net cash flow is leaning towards buyers during this volatile period.
Spot data leans towards accumulation.
Deep negative spot netflow and increased outflow suggest a trend of withdrawing coins from exchanges, often interpreted as a sign of accumulation when investors decrease their intent to sell immediately.
Exchange outflows increased to $15.67 million from $14.65 million. At the same time, Spot Netflow dropped by 86% to -$1.02 million, reflecting an increase in net withdrawals from exchanges.
In many cases, increased buying power in Spot reduces the amount of supply available for sale on exchanges, creating a temporary scarcity effect. If demand persists, this could support prices, but the impact is often sensitive to news and derivatives volatility.
The risk of unlocking tokens could create short-term selling pressure.
The upcoming 'cliff unlock' schedule could suddenly increase supply, putting H under pressure if market demand cannot absorb it in time.
H risks facing resistance from cliff unlocks during the period of December 22–29. According to Tokenomist, H is leading the market in terms of the expected amount of cliff unlock during this time.
Specifically, 105 million H tokens (equivalent to $15.29 million) are expected to be unlocked on December 25. When a large amount of tokens is 'released' into the market, supply may instantly increase, creating downward pressure if profit-taking demand or new buying demand is not strong enough.
Technical momentum indicates a struggle between buying and selling.
RSI and DMI show strong fluctuations indicating that the market is contesting control, and the next direction of H depends on which side dominates after the rebound.
H's RSI rose to 74 then dropped to 63 at the time of recording, indicating that the overbought state has cooled and selling pressure reacted after the strong rally. RSI fluctuations often reflect rapid changes in buying-selling intensity.
The DMI indicator fluctuates and is recorded around 37 after previously reaching 44, highlighting the fierce competition between the two sides. These indicators suggest that the market does not have a fully controlling side yet, so volatility may still expand in both directions.
Key price levels: bullish scenario and bearish scenario.
If buyers maintain the momentum to open new positions, H might return to $0.20 and aim for $0.27; conversely, selling pressure and unlocks could pull the price down to $0.12, potentially testing $0.10.
In a positive scenario, H could regain the $0.20 mark, then aim for $0.27. The $0.30 area is viewed as upper resistance, where the price may encounter strong profit-taking if momentum weakens.
In a negative scenario, if the bears regain the market and the amount of unlocked tokens increases supply pressure, H could drop to $0.12. The $0.10 mark is considered an important support level, where defensive buying reactions will determine the ability to maintain the trend.
Frequently Asked Questions
Why did Humanity Protocol (H) surge strongly and then correct?
H surged strongly as buying power returned in both Spot and Futures, reflected in increased trading volume, Open Interest, and derivatives volume. Subsequently, the price corrected as RSI dropped from high territory and the bears reacted by taking profits in the context of significant volatility.
What does H's negative Spot Netflow mean?
Negative Spot Netflow (e.g., -$1.02 million) often indicates an increase in net withdrawals from exchanges, also known as Spot accumulation. This can reduce the amount of supply available for immediate sale, but does not guarantee the price will rise if demand does not persist.
How could the unlocking of 105 million H affect the price?
Unlocking tokens increases the supply that can be sold immediately, often creating short-term downward pressure if the market does not absorb it in time. With 105 million H ($15.29 million) expected to unlock, the risk of increased volatility and profit-taking may be higher.
What are the notable price levels of H?
Bullish scenario: H could regain $0.20, heading towards $0.27 and encounter strong resistance around $0.30. Bearish scenario: if selling pressure increases, H could retreat to $0.12; $0.10 is an important support area to monitor.
Source: https://tintucbitcoin.com/humanity-protocol-tang-50-h-ra-sao/
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