- Humanity Protocol token price surged to a record high this week.
- The weighted funding rate and futures open interest continued soaring.
- The token will likely benefit from the upcoming AI IPOs.
Humanity Protocol’s price has gone parabolic, reaching a record high this week and continuing a rally that began in April, when it bottomed at $0.0793. It has jumped by over 734%, giving it a market capitalization of over $1.87 billion. It continues to outperform Bitcoin and Ethereum, both of which have dropped this year.
Why the Humanity Protocol Price is Soaring
The Humanity Protocol token has gone parabolic this week, with its volume surging. Its volume soared by 550% to over $830 million, giving it a volume-to-market cap ratio of 45%. Its futures open interest has jumped to a record high of $381 million. Soaring open interest is a sign that investor demand continues to rise.
Similarly, the weighted funding rate has also jumped to the highest level on record. This is an important metric that measures the fees bulls and bears pay in perpetual futures. A positive funding rate is a sign that longs are paying shorts when futures prices are trading above the spot price. It normally discourages overleveraged longs.
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The ongoing Humanity Protocol token surge is driven by soaring demand for artificial intelligence (AI) assets. For example, most AI tokens, such as NEAR Protocol, Venice Token, and Worldcoin, have jumped sharply this year and are outperforming popular coins like Bitcoin and XRP.
Humanity Protocol, like Worldcoin, will likely play an important role in the new AI era, where websites and applications will need human verification.
Humanity aims to solve this challenge by providing a decentralized identity network that verifies a user’s identity and uniqueness without exposing their personal data. It will help to reduce bots, fake accounts, and Sybil accounts.
Humanity’s key participants are identity validators, ZK proofers, and a decentralized attestation committee. Looking ahead, the main catalysts for the Humanity Protocol are the upcoming IPOs of OpenAI, Anthropic, and SpaceX.
Humanity Price Technical Analysis
The daily chart shows that the Humanity Protocol price has gone parabolic in the past few days. This rally occurred after the coin found substantial support, which it failed to breach several times.
The coin has moved above the important resistance level at $0.40, its highest point in October last year. That is a highly bullish sign in technical analysis.
Humanity Protocol crypto token has moved above all moving averages. At the same time, the Relative Strength Index (RSI) has continued rising and has moved to the extreme overbought level of 86.
Therefore, there is a risk that the coin will retreat in the coming days and retest the key support at $0.40, which is about 42% below the current level.
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