The Humanity Protocol price continued pumping today, Dec 23, making it one of the best-performing tokens in the crypto industry. The H token jumped to a high of $0.21, up by 340% from its lowest level this year, giving it a market capitalization of over $453 million.
Humanity Protocol is Pumping Ahead of a Big Unlock
The ongoing Humanity Protocol pump is happening as investors wait for the upcoming token unlock, which will happen on Thursday this week.
Data compiled by CoinMarketCap shows that the network will unlock 105.36 million tokens currently worth $21 million. These tokens will represent 1.05% of circulation and will bring the unlock process to 23%.
Most of the new token unlocks will go to the network’s treasury, with 50 million of them going to the public. It unlocks 105.35 million tokens every 25th of the month, a process that will continue through 2029.
Token unlocks are usually negative for a cryptocurrency because they normally boost the supply. In Humanity’s case, it will bring in the circulating supply to over 2.3 billion.
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The upcoming H token unlock is coming at a time when the supply in exchanges has risen modestly. Data compiled by Nansen showed that the supply in exchanges rose to 353.45 million, up sharply from this month’s low of 95.3 million tokens.
Increased supply of tokens in exchanges means that investors are intensifying their selling process. Therefore, the rising exchange supply and the upcoming token unlocks mean that the Humanity Protocol token may retreat soon.
For starters, Humanity Protocol is a rival to Sam Altman’s Worldcoin, in that is goal is to provide a decentralized identity system. It hopes that only humans can participate in digital platforms, and has already inked a deal with Mastercard.
The partnership will see Mastercard integrate its ID identity layer, enabling privacy-preserving access to financial services like credit, loans, and asset verification.
The Humanity Protocol is pumping as demand for privacy tokens remains elevated. This explains why privacy tokens like Midnight and Zcash are rising.
Humanity Price Technical Analysis
The daily timeframe chart shows that the H price has rebounded in the past few days. It jumped from $0.046 on December 8 to the current $0.2020, its highest point since November 8.
The token has remained above the ascending trendline that links the lowest swing since July this year. It has also moved above the 50-day moving average.
However, the token has slowly become overbought, with the Relative Strength Index (RSI) rising to the overbought point at 73. Therefore, there is a risk that the token will pull back in the coming days, potentially to the key support at $0.1088, its highest point on July 4.
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