Key takeaways
What sparked humanity’s recent price surge and market activity?
Its expansion into the Sui ecosystem and migration to Walrus has sparked investor demand and bullish momentum.
What could influence humanity’s next price development?
Continued dominance by buyers could push it towards $0.4, but increased profit-taking could lead to a retracement to $0.30 or lower.
Humanity (H) soared 138%, reaching a new all-time high of $0.39 before falling back to $0.34 at press time.
At the same time, its volume jumped 512% while the market capitalization jumped 118% to $382 million and $787 million, respectively.
But what triggered this increase?
Humanity expands into the SUI ecosystem
The Coin of Humanity has rallied following its expansion into the Sui ecosystem and its migration from IPFS to Walrus.
On October 22, the team announcement a strategic partnership with Sui (SUI)leveraging the Walrus protocol to improve its infrastructure.
As part of this, millions of user credentials were transferred on-chain into the Sui ecosystem, supporting the creation of secure, verifiable, and decentralized human identification.
The collaboration also aims to increase the number of user IDs from 10 million to 100 million by 2025.
Demand soars with recent development
Importantly, after Humanity and SUI announced their strategic collaboration, investors rushed to the market to accumulate.
In fact, H has seen sustained demand from major holders during this period. According to Nansen, humanity has seen a positive change within the cohort.
Source: Nansen
Over the past day, for example, whales recorded a net purchase volume of 3.9 million, continuing a trend that began on October 22.
Since then, Top Holders have collected 54 million tokens, signaling increased demand from the group.
Futures contracts follow suit
Interestingly, as the market recovered, most investors rushed into the futures market to position themselves strategically.
In fact, according to CoinGlass, Open Interest (OI) jumped 165% to $236 million, while derivatives volume jumped 1,022% to $1.9 billion, as of press time.
Source: CoinGlass
Typically, when OI and volume increase in tandem, it indicates increased participation, with traders taking short or long positions.
Additionally, inflows into the futures market remained high over the past three days, reaching $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 net futures flow surged 1,798% to $54.48 million, reflecting higher capital inflow.
Profit Takers Join the Party
As expected, as the altcoin hit a new high, holders and speculative traders rushed to cash out.
According to CoinalyzeThe altcoin recorded a sales volume of 2.41 million, compared to 2 million in buying volume. As a result, it recorded a negative delta of 401k, a clear sign of increased cash sales.
Source: Coinalyse
Additionally, foreign exchange activity echoed this selling trend. According to CoinGlass, Humanity has seen positive Netflow since the market rebound three days ago.
Source: CoinGlass
At press time, Netflow stood at $406,000, down from $1.04 million the day before, suggesting higher inflows. Often, increased selling activity leads to massive downward pressure on an asset, a prelude to falling prices.
Can the momentum hold
According to AMBCrypto, humanity recovered as investors, both whales and retailers, returned to the market after H was integrated 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 jumped to 61, further validating the strength of the trend.
Source: TradingView
Therefore, these conditions position H for more gains on its charts. If buyers continue to dominate, H will retest its ATH and target $0.4.
However, if profit takers flip the coin as buyer momentum fades, we could see a return to $0.30, with $0.20 as critical support.
