Why did Humanity Coin ($H) Price Fall 50% today?

Profit-Taking and Technical Breakdown Trigger $H Selloff

Humanity Protocol (H) is experiencing a sharp downward correction since its value peaked at $0.40, and it currently sits at the $0.14 mark. The decline comes amid profit-taking, technical failures, and the general market panic. Nevertheless, analysts suggest that the token could rebound to $0.30 or $0.45 if key supports are held, highlighting this is a vital turning point for investors anticipating the next step.

Profit-Taking Fuels Heavy Sell Pressure

The recent 50.53% decline in H price follows a 299% rally over the past two months, a move that lured early investors to cash out. Trading volume surged 318% to $312 million, showing that liquidation rather than accumulation is dominating. Roughly 29% of the supply held by early traders intensified the selloff as large holders took profits around the $0.40 all-time high.

Such mass sell-offs caused a sharp market reaction. The price of H broke through several psychological supports, a sign of exhaustion following the parabolic surge. Slumping bullish momentum signals a shift from aggressive accumulation to heavy distribution. According to analysts, such a correction is likely to reset valuations while also flushing out the weaker hands before stabilization kicks in.

HUSD 1D CHART | SOURCE: CoinMarketCap

Additionally, indicators on the charts confirm that bearish momentum is currently underway. The token fell below the 38.2% Fibonacci mark at $0.25359 and caused a successive cascading stop-loss activation. The 7-day SMA has crossed the 30-day SMA downward, indicating poor trends.

At the same time, the MACD has turned negative, with the distance between it and the signal lines increasing, indicating rapid downside pressure. The RSI range of about 40 suggests declining strength, though not oversold. Traders are eyeing the range of $0.17-$0.12 as the second possible support zone, where a bounce could happen, leading to further recovery that might be sustained towards $0.30.

Demand Zone Opportunity

Analyst LATI identified a critical demand zone between $0.15 and $0.17, where a possible accumulation pocket exists. The analyst hedged shorts to manage downside exposure while waiting to get confirmation of a recovery. This level is indicated by long lower wicks, which point to buyers' demand in the zone.

HUSD 1D CHART | SOURCE: X

If the zone is held, a recovery will lead to the $0.28-$0.30 range and eventually to $0.45-$0.50 due to renewed momentum. But breaching below $0.15 will nullify the bullish thesis and expose it to further losses.

Despite Setback, Fundamentals Stay Strong

Despite H price plunging, the project is building real-life momentum. Recently, Humanity Protocol appeared on the Nasdaq display screen in Times Square and was integrated with Mastercard's Open Finance Network, which is likely to enhance the mainstream adoption.

SOURCE: X

Although the market remains volatile in the short run, analysts suggest that once the market normalizes, Humanity Protocol will be able to recover strongly out of this severe correction.