Deep Dive
1. Upcoming Token Unlock (Bearish Impact)
Overview: A significant token unlock is scheduled for January 25, 2026, releasing 105 million H tokens worth approximately $18.95 million, which represents 4.57% of the circulating supply (Tokenomist). Such scheduled supply increases often lead to anticipatory selling.
What this means: This is bearish because it introduces a known future supply overhang. Rational traders may sell ahead of the event to avoid potential dilution, increasing immediate sell pressure. While the previous December unlock was absorbed, the market's ability to digest new supply repeatedly is uncertain, especially in a weaker sentiment environment.
What to look out for: Watch on-chain exchange inflow metrics and selling volume from unlock recipient addresses after January 25 to gauge if the new supply is being held or immediately dumped.
2. Bearish Technical Momentum (Bearish Impact)
Overview: H's price at $0.154 is below its 7-day ($0.163) and 30-day ($0.168) simple moving averages, indicating the short-term trend has turned negative. The MACD histogram is negative at -0.0040143, showing bearish momentum is accelerating.
What this means: The break below these widely watched averages triggers stop-losses and discourages new buyers, creating a self-reinforcing downtrend. The RSI14 at 46.24 suggests there's room for further decline before reaching oversold levels (typically below 30), meaning selling pressure could continue without a technical bounce.
What to look out for: A sustained move above the 7-day SMA near $0.163 could signal a short-term trend reversal, while a break below the recent swing low of $0.1503 may accelerate losses.
3. Risk-Off Market Sentiment (Bearish Impact)
Overview: The broader crypto market cap fell 1.85% in the last 24 hours, with sentiment firmly in "Fear" territory (index 29). The Altcoin Season Index is low at 28, indicating capital is not rotating into higher-risk altcoins like H.
What this means: Altcoins often exhibit higher beta, meaning they fall more than Bitcoin during market-wide downturns. The lack of altcoin season momentum suggests H lacks the narrative-driven or speculative buying needed to counter broader selling pressure, making it vulnerable to general market outflows.
Conclusion
H's 24-hour decline is primarily driven by traders pricing in this week's significant token unlock, exacerbated by a breakdown in technical support and a risk-averse market climate. For holders, this highlights the impact of scheduled dilution events and the importance of broader market sentiment on altcoin prices.
Key watch: Can buying volume absorb the 105 million H tokens set to unlock on January 25, or will it lead to further price discovery lower?