Humanity Protocol Surges 15% as Supply Pressure Tests Demand Strength

• Price Action: Humanity Protocol rallied 15% but quickly retested support near $0.16.

• Supply Pressure: Upcoming token unlocks may create selling pressure, testing demand strength.

• Trading Range: Token remains between $0.15-$0.18, offering opportunities for breakout or breakdown trades.

Humanity Protocol — H, grabbed attention after a sharp price move late December. A sudden 15% rally signaled aggressive positioning from short-term traders. Rising derivatives activity confirmed growing speculative interest around the token. Momentum appeared strong, yet price stability failed to follow. Support levels quickly returned into focus. This combination of enthusiasm and hesitation framed the current market debate. Traders now weigh growing demand against rising supply risks. The next move may define the near-term direction.

Humanity Protocol rallies 15% – But can demand outrun token dilution?https://t.co/DUZ8pO21xx

— John Morgan (@johnmorganFL) December 31, 2025

Rally Strength Meets Immediate Resistance

The Humanity Protocol posted a strong rally during the hours of December twenty ninth. Price action pushed higher as Open Interest jumped from forty eight million dollars to fifty seven million dollars. This increase reflected rising leverage and short-term conviction among traders. However, bullish momentum faded quickly. Price retraced toward the sixteen cent support area once again. Over the past week, trading remained confined within a narrow band.

That structure created opportunities for range-focused strategies rather than trend chasing. Technical indicators offered mixed signals during this phase. The daily structure leaned bullish following December’s recovery. Relative Strength Index hovered near sixty, showing strength without overextension. On Balance Volume climbed toward a local high. This move suggested increasing buyer participation. Despite these signals, caution remained necessary.

Price could still revisit Fibonacci retracement zones near eleven and eight cents. Those levels represented potential downside risk for swing positions. Token supply dynamics added another layer of complexity. A recent analysis highlighted growing volume and rising Open Interest. Normally, those conditions support bullish continuation. However, an upcoming token unlock challenged that outlook. Data showed a one hundred five million H unlock scheduled for January twenty fifth.

Range Trading Continues as Unlocks Loom

Monthly unlocks do not always trigger immediate sell-offs. Tokens entering circulation may remain held by long-term participants. The previous December unlock absorbed smoothly. That event suggested underlying demand for Humanity Protocol. Still, supply expansion remained unavoidable over time. Current circulation accounted for only twenty three percent of total supply.

Dilution remained a structural consideration for longer-term positioning. Price action reflected this uncertainty. Humanity Protocol traded between fifteen and eighteen cents throughout the past week. That range offered clarity for lower timeframe traders. Buyers showed interest near range support. Sellers appeared active near resistance. A decisive move remained absent. A breakout above eighteen cents could signal renewed bullish control. Such a move would likely attract momentum traders.

Conversely, a breakdown below fifteen cents would favor bearish continuation. Market participants should balance optimism with patience. Strong Open Interest growth showed interest had not vanished. Technical momentum supported further upside potential. However, supply pressure introduced friction. Short-term volatility may precede clearer direction.