Recently, API3 has experienced a rapid surge driven by the OEV narrative, surging from 0.5083 all the way to the strong resistance zone of 0.50-0.55, presenting a typical V-shaped reversal pattern on the daily chart. It appears to be thriving, but there are hidden problems beneath the surface.
From a technical perspective, this rally clearly lacks volume support. The RSI indicator has shot directly into extremely overbought territory, while the price has deviated significantly far from the 200-day moving average. This kind of volume-less straight-line surge is historically difficult to sustain—it typically ends with emotional momentum peaking and then running out of steam.
What's more noteworthy is that the current price has moved far away from the value center around 0.40. Following mean reversion logic, such extreme deviations will eventually need to be corrected. The current market is in a typical phase of sentiment premium, with the main players creating false breakout illusions in the 0.5050-0.5250 range. Once bullish momentum begins to fade, it will be difficult to support further price increases.
Once this situation reverses, the room for a correction will be quite substantial. In the short term, 0.4450 is a support level, with 0.4000 further below. If a real panic sell-off occurs, 0.3720 could even become a deeper pullback level. After positive news is fully priced in, risk release typically begins. At this point, going short on rallies and waiting for natural price declines would be a more prudent trading strategy.
Hey, RSI going off the charts doesn't scare me. The price has already pumped too much anyway. I've been averaging down waiting to break even.
Haha, what "parabolic rallies on low volume"? The bears are spreading rumors again. OEV narrative is the future. Just wait and see the bull market.
0.40 value anchor? Laughing, that's just a story the shorts made up. I don't believe we'll experience a dump this time.
Actually, buying the dip now is smarter than waiting for a pullback. If you miss it, it's really gone. Holding your conviction is what makes you a winner.
What 0.3720? I've already deleted my stop loss anyway. Eventually we'll break even no matter what, I can wait however long it takes.
Recently, API3 has experienced a rapid surge driven by the OEV narrative, surging from 0.5083 all the way to the strong resistance zone of 0.50-0.55, presenting a typical V-shaped reversal pattern on the daily chart. It appears to be thriving, but there are hidden problems beneath the surface.
From a technical perspective, this rally clearly lacks volume support. The RSI indicator has shot directly into extremely overbought territory, while the price has deviated significantly far from the 200-day moving average. This kind of volume-less straight-line surge is historically difficult to sustain—it typically ends with emotional momentum peaking and then running out of steam.
What's more noteworthy is that the current price has moved far away from the value center around 0.40. Following mean reversion logic, such extreme deviations will eventually need to be corrected. The current market is in a typical phase of sentiment premium, with the main players creating false breakout illusions in the 0.5050-0.5250 range. Once bullish momentum begins to fade, it will be difficult to support further price increases.
Once this situation reverses, the room for a correction will be quite substantial. In the short term, 0.4450 is a support level, with 0.4000 further below. If a real panic sell-off occurs, 0.3720 could even become a deeper pullback level. After positive news is fully priced in, risk release typically begins. At this point, going short on rallies and waiting for natural price declines would be a more prudent trading strategy.