While the broader crypto market slipped into a sea of red, Humanity Protocol (H) defied the trend with a stunning 128% rally in the past 24 hours, surging to a new all-time high (ATH) of $0.195. The sudden upswing came even as Bitcoin and Ethereum, market leaders, recorded notable pullbacks, dragging the altcoin sector lower.

At the start of the trading day, Humanity Protocol hovered around $0.07894, before the bulls took charge and propelled the token to record-breaking levels. This bullish charge saw the asset shatter multiple resistance barriers, particularly between $0.07890 and $0.190, signalling strong investor appetite and heightened market confidence in the project’s potential.

As of this writing, H trades near the $0.1797 mark, holding onto much of its gains despite a softening of momentum. Its market capitalisation now stands at $386.21 million, while trading volumes have exploded by over 1,696%, reaching $346.19 million, a clear reflection of heightened speculative interest.

Profit-Taking Risk Looms Amid Heavy Liquidations

While the sharp rally captured market attention, data from Coinglass shows that $9.92 million worth of H positions were liquidated over the last 24 hours. Such a large volume of liquidations typically signals intense volatility, often preceding short-term pullbacks as traders take profits.

The Relative Strength Index (RSI) currently stands at 89.59, placing Humanity Protocol deep into overbought territory. Historically, readings above 70 have often preceded short-term corrections, suggesting that the token’s rally could soon face selling pressure as investors lock in profits.

Similarly, the Bull Bear Power (BBP) indicator is at 0.119096, hovering close to the neutral line. This hints that while bulls still have a slight upper hand, the overall momentum may be starting to weaken.

Technical Indicators Hint at Possible Short-Term Pullback

Technically, Humanity Protocol remains bullish but increasingly stretched. The Moving Average Convergence Divergence (MACD) line has crossed above the signal line, indicating a continuation of bullish momentum. This crossover generally suggests that buyers are still in control, potentially paving the way for another leg higher.

However, traders should tread with caution. Should the bullish momentum falter, the asset may retrace to its immediate support at $0.1787. A breakdown below this level could accelerate declines toward the lower support zones between $0.1775 and $0.1760.

Conversely, if buyers regain momentum, the token may test its resistance near $0.1807, and a sustained move above this threshold could trigger a golden cross formation. In that scenario, the price could attempt to revisit or even surpass its recent high of $0.1820 and aim for another record peak.

Strong Money Flow Reflects Ongoing Bullish Sentiment

Despite the looming risk of correction, market indicators still reveal strong underlying demand. The Chaikin Money Flow (CMF) is currently positioned at 0.55, signalling substantial inflows of capital into Humanity Protocol. This figure underscores the robust buying pressure supporting the asset and suggests that institutional or large-scale traders may still be accumulating positions.

Such strong CMF readings often precede continued upward movements, especially when supported by a rising MACD and sustained trading volume. However, with the RSI at near-peak levels, a short-term cooldown could offer healthier consolidation before the next major move.

Can Humanity Protocol Maintain Its Momentum?

Humanity Protocol’s meteoric rise stands out amid a broadly bearish crypto landscape, highlighting the project’s growing appeal and investor enthusiasm. Yet, the combination of overbought technical readings and large-scale liquidations points to a period of potential volatility ahead.

If the bulls can maintain momentum above the $0.18 mark and buyers continue dominating the market, the token may consolidate before launching another rally. However, if the profit-takers gain control, a short-term correction toward the $0.17 range appears likely before stabilising.

In short, Humanity Protocol’s latest breakout reflects both the excitement and fragility of emerging altcoins in a volatile market. Whether this surge marks the start of a sustained bullish cycle or a temporary spike before correction will depend on how traders react in the coming sessions.