Humanity Protocol [H] was down 8.04% in 24 hours, and its Open Interest was down 10.23%. This indicated strong short-term bearish pressure on the altcoin, which is up 7% measured from the start of March.
Source: Coinalyze
Despite the short-term bearish signal, there were some other indications that H might be on a bullish trajectory over the coming days.
The first clue was small, but it was the rising Spot CVD over the past two days.
Even though prices and speculative participation were falling, Spot buying has been steady. By itself, this is not enough to shift the long-term Humanity Protocol token price trend.
The bullish argument for Humanity Protocol
Source: H/USDT on TradingView
The 1-day chart showed a bullish structure break for H, made in the first week of February. This structure shift saw prices rally to $0.252 before receding to the $0.101 lows.
A set of Fibonacci retracement levels was plotted based on this swing move. It showed that the $0.133 level was the 78.6% retracement level.
At the time of writing, H was trading at $0.134, just under this support.
The OBV has made a new low since February.
Though the price structure was bullish, the OBV’s lower low meant that selling pressure over the past month has outweighed the buying.
On the other hand, the RSI was meandering around neutral 50 to show a lack of strong, sustained momentum in recent days.
Traders’ call to action- Time for H to rebound
Source: H/USDT on TradingView
The $0.128-$0.136 area (cyan) has served as both support and resistance for H over the past two weeks. At the time of writing, it was a demand zone.
It is likely that H would rebound from here, giving traders a chance to go long with a clear invalidation.
A drop below $0.128 would signal that sellers have the upper hand.
Before buying, traders and investors should remember that Bitcoin [BTC] has a short-term bearish outlook and was also on a long-term downtrend.
Moreover, the wider crypto market was laboring in a fearful environment.
These challenges could be too big for H buyers to overcome over the next 24-48 hours.
Final Summary
- H has a bullish price structure on the 1-day chart and was testing a key local demand zone.
- The BTC and wider crypto market uncertainty could drag H prices lower and invalidate the bullish idea.
