Can Humanity Protocol (H) bounce back after a 41% adjustment?

Humanity Protocol (H) has undergone a strong sell-off, causing the price to fall over 10% in the past day, reflecting a clearly weakening market sentiment. Although risks remain, the growth potential of this asset is still very notable, opening up opportunities for a strong breakout in the coming days.

Fractal model of H

Technical analysis on the chart shows that the recent fall from the historical peak of $0.40 to $0.23 – equivalent to a decline of 41% since October 24 – is reminiscent of the mid-October correction.

During the period of October 14-18, this asset plummeted by 49.8%, from $0.20 to $0.10. However, after this sharp decline, H quickly rebounded, reaching an all-time high of $0.40, equivalent to a 292% increase from the previous low, indicating that the buying force is still very strong.

Daily chart of H/USDT | Source: TradingViewCurrently, the fractal pattern seems to be forming again, opening up the possibility that H will continue a new bullish trend in the coming days.

Indicators Suggesting a Price Surge is About to Occur

Bollinger Band, an indicator that specifically monitors high and low valuation areas to detect turning points as well as market trends, is suggesting an upcoming price increase. Currently, the asset is trading around the middle band, and in this context, it could act as a catalyst for a strong rebound – a scenario that history has proven many times.

Daily H/USDT Chart | Source: TradingViewThis is further reinforced by the Parabolic Stop and Reverse (SAR) indicator, as the dots appear below the price level, signaling that an upward trend is gradually forming. Along with that, the Money Flow Index (MFI) remains in the positive range from 50 to 80, with the current value at 57.20, reflecting strong liquidity circulating in the market and contributing to brightening prospects for a further upward momentum.

Many signs support the price increase

The funding rate data continues to bolster the bullish outlook of the market. Typically, the derivatives market tends to follow the bearish trend of the underlying asset, but this time the situation is quite different.

Source: CoinGlassAlthough H is falling on the chart, the funding rate trajectory in the derivatives market still leans towards the bulls. The funding rate index confirms this with a reading of 0.0067%, indicating that liquidity from derivatives is still strongly betting on the market's upward trend.

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