API3, a decentralized oracle solution, has seen a significant price surge amidst a turbulent market environment, increasing by 90% over the past week.
Funding Rate Dynamics
Recent analysis shows that API3’s funding rates have turned notably negative in the last 24 hours. As of August 19th, the weighted funding rate stood at -0.47%, decreasing to -1.10% by August 20th. This indicates that many traders are expecting a price decline and are opening short positions. However, despite this trend, API3’s price has not seen significant declines. Though there has been a slight pullback from its peak, buyer interest remains high in the market.
Liquidity and Market Interest
Purchases of the API3 token continue steadily. The Chaikin Money Flow (CMF) indicator on the daily candlestick chart, which tracks on-chain liquidity, has increased from 0.04 to 0.10 in recent hours. Despite price pullbacks, the CMF’s positive trend suggests ongoing capital influx to the market. Exchange-held API3 balances have decreased by 30.5% in the last week, falling to 28.63 million tokens. Concurrently, the top 100 addresses increased their API3 holdings by 25.98%.
Analysis and Price Movement Predictions
The 4-hour API3 price chart exhibits positive momentum. The price has received support around the 0.236 Fibonacci level at approximately $1.49, with the Bull-Bear Power (BBP) indicator remaining positive at 0.464, signaling potential market favor towards buyers. Should buyers maintain their positions, the probability of short position closures may rise, potentially leading to renewed price hikes. Initial target levels are identified as $1.64 and subsequently $1.77. Conversely, a fall below $1.24 could put long positions at risk, accelerating downward momentum.
The API3 token showcases significant investor interest despite negative funding rates. Analysts expect that further market developments could clarify the price direction in the short term.
