Key highlights
What caused the recent surge in Humanity’s price and market activity?
The price surge and market activity of Humanity were triggered by its expansion into the Sui ecosystem and migration to Walrus, resulting in increased investor demand and bullish momentum.
What factors could impact Humanity’s future price movement?
Continued dominance by buyers could drive Humanity towards $0.4, but rising profit-taking might lead to a retracement to $0.30 or below.
Humanity [H] experienced a remarkable 138% surge, reaching a new all-time high of $0.39 before pulling back to $0.34 at the time of writing.
During this period, its trading volume spiked by 512%, while its market capitalization increased by 118% to $382 million and $787 million, respectively.
But what was the catalyst behind this upward movement?
Humanity’s expansion into the SUI ecosystem
The surge in Humanity’s price followed its integration into the Sui ecosystem and the transition from IPFS to Walrus.
On October 22, the team announced a strategic partnership with Sui [SUI], leveraging the Walrus protocol to improve its infrastructure.
As part of this collaboration, millions of user credentials were moved on-chain to the Sui ecosystem, facilitating the creation of a secure, verifiable, and decentralized Human ID.
The partnership also aims to increase the number of user credentials from 10 million to 100 million by 2025.
Surge in demand following recent developments
Significantly, after the strategic collaboration between Humanity and SUI was announced, investors flocked to the market to acquire tokens.
Notably, H has seen consistent demand from top holders during this period, with Nansen reporting a positive balance change among this group.
Source: Nansen
In the last day alone, whales registered a Net Buy volume of 3.9 million, continuing a trend that began on October 22. Since then, Top Holders have accumulated 54 million tokens, indicating increased demand from this segment.
Futures market follows suit
Interestingly, as the market rallied, many investors entered the Futures market to strategically position themselves.
According to CoinGlass, Open Interest (OI) surged by 165% to $236 million, while Derivatives Volume increased by 1022% to $1.9 billion at the time of writing.
Source: CoinGlass
Typically, when OI and volume rise simultaneously, it indicates increased participation with traders taking either short or long positions. Additionally, capital inflows into the Futures market have remained elevated for the past three days, reaching $1.22 billion.
Source: CoinGlass
Notably, Humanity witnessed $1.1 billion in Futures Inflows compared to $1.05 billion in outflows. Consequently, the altcoin’s Futures Netflow surged by 1798% to $54.48 million, reflecting a higher influx of capital.
Profit-taking enters the fray
As expected, with the altcoin reaching a new high, holders and speculative traders rushed to capitalize on their gains.
According to Coinalyze, the altcoin saw 2.41 million in Sell Volume compared to 2 million in Buy Volume, resulting in a negative delta of 401k, indicating increased spot selling.
Source: Coinalyze
Furthermore, exchange activity mirrored this selling trend, with Humanity recording a positive Netflow since the market rebounded three days ago.
Source: CoinGlass
Currently, the Netflow stands at $406k, down from $1.04 million the previous day, indicating increased inflows. Often, heightened selling activity exerts significant downward pressure on an asset, potentially leading to lower prices.
Can the momentum be sustained
According to AMBCrypto, Humanity surged as investors, both whales and retail, re-entered the market following H’s integration into the SUI ecosystem.
Subsequently, the altcoin’s Relative Strength Index (RSI) climbed to 75, indicating growing bullish momentum. Additionally, its Stochastic RSI rose to 61, further confirming the strength of the trend.
Source: TradingView
These conditions position H for further gains on its charts. If buyers maintain control, H could revisit its all-time high and target $0.4.
However, if profit-takers take charge while buyer momentum wanes, a retracement to $0.30, with critical support at $0.20, could be on the horizon.
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