Huma Finance Coin Price Surge Hits 20%, But Then Dips: What Now?

Huma Finance Coin Surges Before Pullback—What’s Driving the Price and What’s Next?

The Huma Finance token (HUMA) made headlines this week following an abrupt surge in value that saw the decentralized finance (DeFi) asset jump nearly 20% in a single day. The token rallied from a previous low of approximately $0.045 to an intraday high of $0.05432 before experiencing a mild pullback and stabilizing around $0.050 by the end of the trading session. This translates to a net daily gain of roughly 18%, raising questions about the catalysts behind this price action—and what could happen next.

Source: X

According to CoinMarketCap data, HUMA’s 24-hour trading volume rose sharply by 38%, hitting $439 million. Such a significant increase in both price and volume has naturally drawn attention from investors and analysts alike, sparking debate about whether the coin is embarking on a legitimate uptrend or merely participating in a short-lived speculative rally.

What Sparked the HUMA Token Surge?

Several underlying factors appear to have contributed to Huma Finance’s recent price activity. Unlike the typical speculative spikes seen in low-cap altcoins, this upward movement has been accompanied by real technical updates, strong user activity, and positive developments within the HUMA ecosystem.

1. High Token Staking Post-Airdrop

Perhaps the most important structural factor behind the rally is the community’s behavior following the platform’s recent airdrop. According to co-founder Richard Liu, more than 70.5% of all airdropped tokens have already been staked by users. This figure was publicly shared on social platform X (formerly Twitter), and it provides a compelling explanation for the reduced token supply currently available on the open market.

Source: 

Gemxbt X Account

By locking their tokens to earn staking rewards, users have effectively removed a large portion of the circulating supply, which naturally contributes to upward price pressure when demand increases. In DeFi ecosystems, staking ratios above 50% are typically seen as indicators of strong community commitment, and HUMA’s numbers surpass that threshold by a wide margin.

2. The Huma 2.0 Upgrade and Deposit Reopening

The second driver behind the price momentum is the long-awaited Huma 2.0 protocol update. The development team has officially announced that deposits for the new version of the protocol will reopen on June 6, 2025, with general access beginning on June 11. Early-access participants who previously registered will be able to deposit starting June 10 at 10:00 UTC—24 hours ahead of the broader market.

This announcement has sparked renewed enthusiasm from both existing users and new investors, who see the upgrade as a signal of Huma Finance’s commitment to continued product development and scalability. The 2.0 version promises to enhance user experience, improve smart contract efficiency, and introduce new yield mechanisms—factors that could further support token value.

3. Strategic Integration with Stargate

In addition to internal ecosystem upgrades, Huma Finance has also made notable progress on the interoperability front. The platform has confirmed a real-time integration with Stargate, a well-known cross-chain messaging protocol that allows assets and data to be transferred seamlessly across blockchains.

This strategic partnership expands the reach of Huma’s financial products by enabling liquidity across multiple chains, making it easier for users to move assets in and out of the Huma protocol. In DeFi, the ability to scale across chains is increasingly seen as vital for long-term survival, and this development has added considerable credibility to Huma’s future growth potential.

Technical Analysis: Is This a Sustainable Rally or a Classic Pump?

To determine whether the price surge represents a sustainable uptrend or a temporary pump, technical indicators provide useful insights. Prominent crypto analyst @gemxbt shared a 1-hour chart analysis indicating that the token is forming higher highs and higher lows—a classic signal of bullish momentum.

According to TradingView, HUMA has broken through all major short-term moving averages, including the 5MA, 10MA, and 20MA, and continues to hold above these levels. The token is also currently riding the upper Bollinger Band, which often indicates strong bullish sentiment, albeit with caution as prices become stretched.

The Relative Strength Index (RSI) currently hovers around 70, entering the overbought zone. While this suggests momentum is strong, it also implies that the asset may soon face a corrective pullback. Meanwhile, the MACD (Moving Average Convergence Divergence) remains in positive territory, although the histogram shows signs of tapering off—hinting that bullish momentum may be slowing.

Source: TradingView

Support and Resistance Levels to Watch

From a technical standpoint, traders are closely monitoring the following levels:

• Immediate Support: $0.048 and $0.050

• Near-term Resistance: $0.0535 and $0.060

If the token holds support at these levels and volumes remain consistent, it could stage a renewed rally. Conversely, a breach below $0.048 might indicate a deeper retracement toward the $0.044–$0.046 region.

What Happens Next? Potential Scenarios for HUMA’s Price

Based on current trading patterns, market data, and ecosystem updates, three possible scenarios could play out in the near term:

Scenario 1: Healthy Pullback Before Resuming Uptrend

This is currently the most probable path forward. After a rapid price increase, assets often consolidate or dip slightly before resuming their upward trajectory. If HUMA pulls back to the $0.048–$0.049 zone and buyers re-enter, the next leg up could test resistance at $0.055 or even push toward $0.060.

Scenario 2: Breakdown After a Fakeout

If the recent move is revealed to be a false breakout and selling pressure intensifies, the price could slip below the $0.048 support level. In this case, HUMA may revisit the $0.044–$0.046 area, potentially forming a new base before attempting another rally.

Scenario 3: Continuation Rally to New Highs

Should trading volumes increase again—driven by user engagement with the 2.0 upgrade and continuing staking enthusiasm—HUMA could attempt a more aggressive move toward new highs. In an extremely bullish scenario, some analysts believe the price could test the $0.087–$0.10 level over the coming weeks. For this to occur, the RSI would need to stabilize between 60 and 70, with MACD confirming continued momentum.

Community Sentiment: Real Momentum or Manufactured Hype?

While many digital assets have suffered from “pump and dump” cycles, the data surrounding Huma Finance’s rise suggests more organic, structural drivers are at play. With over 70% of tokens locked in staking, a major protocol upgrade underway, and an expanding ecosystem facilitated by cross-chain partnerships, the HUMA token is demonstrating early signs of sustainability.

That said, investors should remain cautious. Volatility in the cryptocurrency market remains high, and even promising projects can experience rapid corrections. For long-term holders, the project’s fundamentals appear sound, but short-term traders should watch key support levels and macro sentiment closely.

Final Verdict: One to Watch as DeFi Evolves

Huma Finance is currently exhibiting all the hallmarks of a growing DeFi project with a committed user base, an expanding product suite, and increasing interoperability. Whether the recent price action represents the beginning of a sustained upward trend or simply a temporary spike remains to be seen, but the platform’s recent developments have certainly moved it higher on the radar of serious investors.

For now, all eyes are on the Huma 2.0 launch in mid-June. If user engagement and volume continue to rise, HUMA may be positioning itself as a notable contender in the DeFi space for the second half of 2025.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.