Humanity Protocol [H] rallied by more than 15% in the past 24 hours, taking its weekly gains to more than 25% at press time.
The altcoin has been declining since the 6th of March, when the price traded at around $0.20. After hitting the day’s high of $0.1127, H started to reverse, but for how long will this last?
How low will H’s price correct?
On the 4-hour charts, Humanity Protocol was breaking previous internal resistance and making higher highs. Over the past four days, the altcoin has traded from a low of $0.0782 to $0.1127, where it faced rejection.
Before this move, H’s price moved sideways between $0.080 and $0.090 for about two weeks, suggesting consolidation and a potential bottom. H surged aggressively, breaking past the accumulation between $0.90 and $0.10.
Supporting the bullish run during the day were indicator readings of Chaikin Money Flow (CMF) and MACD.
The CMF’s daily peak was at 0.05, suggesting capital inflow, while MACD confirmed it’s the bulls responsible for inflows. Worth noting is that these indicators were fading, indicating momentum was easing.
If price can hold above $0.10, the next wave could face hurdles at levels above $0.13. Otherwise, H may drop below $0.0954, which is the discount area for the 4-day rally.
The pattern suggests the altcoin may be entering a correction phase. Hence, a rebound depends on where H’s price finds support.
Tracking network activity
This spike in daily gains was partly driven by the network activity, though it did not display strength. Most of the metrics recorded positive changes.
For instance, total transactions hit 39.64 million, which represented 3% growth over the past seven days. Total Fees and Verified Users increased on a similar scale, reaching 0.0000016 H and 476,038, respectively.
However, Daily Transactions had dipped to 155.5K from 162.4K, confirming the network activity was not as strong.
Where are H orders being placed?
Looking at the liquidation heatmap of the altcoin, it was clear that more short positions had been built above the current price than longs below it.
A short squeeze of orders above $0.10 accelerated the current upward rally. The charts showed hundreds of thousands of H orders were clustered between $0.11 and $0.12.
Meanwhile, the rejection at $0.1127 resulted in orders below this level being liquidated. That drove a sharp drop to $0.10, and below it, small clusters were forming.
Another long squeeze just like the one below $0.1127 would mean the price dropping below $0.090.
Final Summary
- Humanity Protocol surged 15% in 24 hours due to a price action breakout and a short squeeze.
- H faces resistance at $0.1127, with the price now seemingly in a correction phase.
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