Humanity Protocol (H) increased by 11% thanks to the combination of spot and derivatives activities, but adjustment risks still exist.

Humanity Protocol (H) has experienced an impressive growth, increasing by 11% over the past 24 hours. This growth is believed to result from a combination of active trading on both spot and derivatives markets.

According to statistics, investors in the spot market contributed 16.4% of the total trading volume, while perpetual contract traders dominated with 83.6%. The total trading volume reached $65.26 million.

However, despite positive signals, this growth trend still carries potential risks of correction. Emerging indicators suggest the market may face pressure in the near future.

Selling pressure drops to record lows

H’s sustainable recovery has been reinforced as selling pressure has gradually decreased over the past month. Market data shows that the total sell-off value in the past day was only about $93,000, the lowest since February 3.

This decline often indicates that investors are gradually reducing aggressive sell-offs. It may also reflect a more positive market sentiment as buyers begin to gain the upper hand over sellers.

In the perpetual futures market, signals also point to a similar trend, with an optimistic sentiment prevailing.

Source: CoinGlass Specifically, data from perpetual contracts shows the total open contract value reaching $71.34 million, mostly held by long-term traders. At the same time, the Funding Rate for the past day was 0.0141%.

A positive Funding Rate is generally seen as a sign of optimistic sentiment, as long-term investors are willing to pay fees to maintain their positions, thus reinforcing the outlook for continued price increases.

Warning signs emerge

Although the growth trend is ongoing, some indicators show uncertainty about maintaining this trend.

Currently, liquidation data shows an almost perfect balance between long and short positions liquidated in the past day. According to CoinGlass, the total liquidation value of long positions was about $28,900, while short positions liquidated reached $29,110.

Source: CoinGlass When the liquidation rates between longs and shorts are nearly balanced, it often reflects market indecision. This balance indicates that neither bulls nor bears have a clear dominance.

In this context, the market lacks a strong direction, making H’s price vulnerable to either further increases or short-term reversals.

Downside risk remains high

The liquidation heatmap also highlights disparities in liquidity cluster distribution on the price chart. These clusters are areas with a high concentration of unexecuted liquidation orders, often acting as “price magnets,” attracting price movement toward them during volatility.

Currently, the heatmap shows a large concentration of liquidation clusters below the current price, giving a relative advantage to traders setting short orders. If upward momentum weakens, these liquidity clusters could pull the price back down.

Conclusion

Although Humanity Protocol is experiencing positive growth, traders should exercise caution when participating in the market. Current market sentiment remains volatile and susceptible to unexpected factors.

Source: CoinGlass In a market lacking clear direction, risk management and close monitoring of key indicators are essential for making effective investment decisions.