Journalist
Published:
Humanitarian Protocol (H) saw a 15% rally in the hours of December 29. The move saw the token’s Open Interest (OI) increase from $48.5 million to $57.5 million, a sign of strong speculative interest.
Yet, H was unable to maintain its bullish momentum and retested the $0.16 support level. The token has been trading in a range over the past week, and this range could provide opportunities for traders.
Assessment Humanity Protocol long term trend
A recent report from AMBCrypto highlighted the recent increase in trading volume and OI. Although a classic bullish signal, it faced the threat of the token’s upcoming unlock.
Data from Tokenomist showed that a release of 105.35 million H, worth $17.56 million, is scheduled for January 25. This is part of a monthly unlock that could add to short-term selling pressure on H and impact uptrends.
Source: H/USDT on TradingView
The 1-day structure was finally bullish, following the token’s strong recovery in December. The RSI reading of 60 showed that momentum was strong, but not yet overbought.
The OBV was moving closer to a local high to reflect increased buying pressure.
At the same time, swing traders should remember that there is a possibility of price declines to the Fibonacci retracement levels at $0.112 and $0.083.
Should H traders expect an uptrend now?
Monthly token releases do not translate into strong immediate selling pressure. Unlocking 105 million H tokens does not need to be sold immediately, but it remains a significant long-term obstacle to price action. The December 25 release has been absorbed, suggesting demand for H.
Data from CoinMarketCap showed that only 23% of the total supply was now in circulation. Investors should expect dilution over time and prepare accordingly.
In the coming weeks, an uptrend is possible, but it could be preceded by a retest of the Fibonacci retracement levels at $0.112 and $0.083.
Wait for a breakout of THIS range
Source: H/USDT on TradingView
H was trading in a range between $0.15 and $0.18 over the past week. The extremes of the range could give short-term traders the opportunity to enter the market. A break above $0.18 would provide a buying opportunity.
On the other hand, a break below $0.15 would be a warning of bearish dominance.
Final Thoughts
- Monthly token unlocks should be a barrier to price appreciation, but increased demand may offset the effects of dilution.
- It is unclear whether demand for H will continue to grow. For now, traders can monitor H bulls’ attempts to overcome the local resistance at $0.18.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
