General information
API3 is a decentralized protocol that provides access to external data through an API using Oracle Airnode technology. The API3 token serves to govern the protocol and incentivize ecosystem participants. The API3 price is currently around $1.72, with a market cap of $200 million. The asset has shown moderate fluctuations over the past 30 days.
Development scenarios
1. Bullish scenario (price increase):
With the growing demand for oracles and API3 integration with DeFi protocols, the coin may break through the $2.20 level.
Successful upgrades and partnerships will increase investor confidence, which could push the price towards $2.50.
2. Bearish scenario (price fall):
If interest in the DeFi ecosystem wanes or trading activity is low, API3 could fall to the $1.50 or even $1.30 support levels.
3. Consolidation (sideways movement):
The price may stabilize in the $1.60–$1.80 range, which will create an opportunity to accumulate assets in anticipation of further growth.
Trading Strategies
Entry points:
Conservative approach: Buy around $1.60 as support approaches.
Aggressive approach: Enter on breakout of $1.80 with the aim of fixing the move to the next resistance.
Exit points:
Short term targets: $2.00 and $2.20 to lock in profits.
Medium term targets: $2.50 under favorable market conditions.
Stop Losses:
Moderate risk: below $1.50 to minimize losses.
High risk: below $1.40 in worst case scenarios.
Conclusion
API3 remains an attractive asset due to its technology and the possibilities for integration into decentralized applications. However, it is important to consider market fluctuations and a possible decrease in interest in oracle solutions. It is recommended to use moderate stop losses and monitor news on the development of the project.