- API3 approaches key resistance at $2.20, with technical indicators suggesting a potential breakout toward $4.00.
- On-chain metrics show mixed signals, but open interest surge and bullish RSI indicate continued market interest.
API3 has made a remarkable 20% gain in the past 24 hours, trading at $2.07 at press time, as market sentiment appears to shift in a more positive direction. This surge has many wondering whether the rally will continue or if a reversal is on the horizon.
As API3 approaches key resistance levels and with several technical indicators flashing bullish signals, traders are looking for clues on what might come next. Let’s dive into the price action and on-chain metrics to assess API3’s next move.
Is API3 ready to break through resistance?
API3 is currently trading within an ascending wedge, a pattern that often precedes a breakout. The token is approaching a key resistance level at $2.20, which has acted as a barrier in the past.
Therefore, if API3 breaks above this level, a bullish continuation toward $4.00 seems likely. This price action suggests that API3 could see further gains in the short term, provided the resistance at $2.20 is cleared.
The Relative Strength Index (RSI) for API3 sits at 63.42, suggesting that the token is not yet in overbought territory. This indicates room for further upward movement, although traders should be cautious as the token nears overbought conditions.
Additionally, the MACD has recently shown a bullish crossover, a strong signal that momentum could continue building. These indicators align with the idea of further upside potential, especially if the breakout above $2.20 happens.
Source: TradingView
Is the price diverging from network growth?
At 37.09%, API3’s Daily Active Addresses (DAA) show a notable divergence from the current price action. This divergence suggests that the token’s price might be outpacing its network growth, which could indicate overextension.
While this doesn’t necessarily point to an immediate reversal, it does raise a flag for traders to stay alert for signs of a pullback or consolidation.
Source: Santiment
On-chain metrics: Are the signals bullish or bearish?
API3’s on-chain signals paint a mixed picture. Net network growth has dropped by -0.35%, indicating slight bearishness in network activity. However, the “In the Money” metric remains bullish at 28.09%, suggesting that a significant portion of the market is in profit.
On the other hand, concentration is neutral at 0.03% bearish, and large transactions have declined by -2.31%, which could signal caution. Despite these mixed signals, the overall on-chain data leans slightly bullish.
Source: IntoTheBlock
Open interest surge: What does it mean for API3?
API3 has seen a significant increase in open interest, rising from 13.76% to 16.23 million. This surge reflects growing interest in API3 and suggests that traders are positioning for more price action.
Rising open interest typically signals that investors expect continued volatility, which bodes well for API3’s short-term price prospects.
Source: Coinglass
Read API3 [API3] Price Prediction 2023-24
Is API3 set for a breakout or a pullback?
API3’s strong 20% gain in the past 24 hours positions the token for potential upside, especially with resistance at $2.20 in sight. The technical indicators suggest more room for growth, and the open interest surge indicates a bullish sentiment.
However, the divergence with DAA and mixed on-chain signals suggest that caution is warranted. Overall, if API3 can break above $2.20, it could target $4.00 in the near term, but traders should stay alert for any signs of a pullback.
