The API3 price surge has caught the attention of investors aiming for the $4.0 target in the near future.
In a remarkable move, the API3 cryptocurrency has experienced a robust rally, soaring over 100% within the last 24 hours. Currently, the API3 price stands at $3.05, marking a significant 95% increase, and boasts a market cap of $260 million. Accompanying this surge, trading volumes have seen an astonishing spike of 3500%, reaching $343 million at the time of writing.
API3 Price Surge Analysis
Renowned analyst Sell When Over | 9000.sei (@sell9000) sheds light on the recent API3 price surge, attributing it to several key factors. A major contributor is the notably negative funding rate, a pattern reminiscent of past instances observed with UMA. According to Sell9000, the current negative funding rate, similar to $UMA, makes holding long positions expensive, incentivizing buyers to drive the price upward.
Adding to the dynamics, DWF reportedly provided a $1.5 million market-making loan, introducing additional incentives to boost the price to profitable levels. Sell9000 notes that this loan from DWF includes an option to purchase tokens within a specified price range, further influencing market dynamics.
On the technical analysis front, the insights from The Great Mattsby (@matthughes13) highlight API3’s breakthrough of the previous resistance at $2.50 (white circle) and the establishment of new resistance around $3.20 (yellow circle). This development has fueled a remarkable 45% surge in the API3 price, evident in a significant daily candle.
#API3 with a giant 45% daily candle so far breaking above previous resistance (white circle) and finding new resistance at the blue angle above (yellow circle). Great to see pic.twitter.com/bGMNEYXbLR
— The Great Mattsby (@matthughes13) January 20, 2024
However, despite the positive momentum, challenges may emerge. When questioned about the possibility of reaching $4 in the short term, Mattsby acknowledges the potential difficulty in surpassing the resistance at $3.20, identified by the orange horizontal line. The market awaits further developments as API3 navigates these critical levels.
API3: Changing How Smart Contracts Get Data
Facing challenges in accessing reliable data, smart contracts find a potential solution in the use of application programming interfaces (APIs). API3 emerges as a revolutionary force aiming to transform the creation, management, and monetization of decentralized APIs on a large scale. In a world increasingly adopting blockchain technology across sectors, the API3 team underscores the growing importance of smart contracts delivering “timely, reliable real-world data.”
The API3 whitepaper, unveiled in September 2020, pinpointed a crucial issue related to APIs: connectivity. Presently, smart contracts lack a direct means to access APIs for the most up-to-date data, leading to the rising popularity of oracles.
While oracles have partially addressed this challenge, the industry grapples with the “Blockchain Oracle Problem.” Oracles, serving as intermediaries between APIs and smart contracts, introduce heightened costs and centralization. API3 sets out to tackle this predicament by empowering API providers to operate their own nodes.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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