Cloud Hosting

Home Journal Why Is API3 Pumping Today? Are You Late To Buy In Right Now?

The cryptocurrency API3 saw a sudden 55% price surge today despite no major project announcements or partnership news. This seemingly random pump comes as API3 has been experiencing high short interest in recent weeks.

Importantly, API3 does have an interesting use case as a decentralized API oracle network that could provide value. However, there have been no new developments on the fundamentals to justify todays expansive rally. We will now probably see a wave of shorter sending it back down, similarly to what XRP experienced a couple of weeks ago.

The metrics are compelling: a funding rate of -1.5%, open interest swiftly climbing to 22 million, and a staggering 71.44% in shorts. These figures point to the increasing possibility of an impending short squeeze for the token.

Such dynamics draw parallels to the movements witnessed with tokens like XRP some months ago. Its conceivable that other altcoins might exhibit similar patterns soon, indicating a broader market trend.

However, there is a bull case to be made as well. Bullish divergence on both the weekly and daily Relative Strength Index (RSI) charts, combined with a weekly bullish divergence on the Moving Average Convergence Divergence (MACD), gives traders and investors something to think about. Should the tokens price surpass the 1.03 mark on weekly charts, a possible target range between 1.96 and 2.48 becomes an attractive proposition for long positions.

Still, buying right now would be too risky and it would be prudent to wait for a pullback before entering into position.

Beyond the market speculations, #API3 offers a groundbreaking vision for the decentralization of application programming interfaces (APIs). This initiative seeks to tackle one of the critical hurdles in the smart contract ecosystem: the need for dependable and reliable data. By integrating the power of APIs, there lies the potential to ameliorate this prevalent challenge.

The current landscape sees smart contracts grappling with direct API connections for essential data. This disconnect has paved the way for the rise of oracles, intermediaries that bridge the gap between APIs and smart contracts. However, these oracles sometimes introduce inefficiencies in the form of added costs and centralized processes. API3 promises to eradicate these bottlenecks, allowing API providers to set up and manage their nodes, thus fostering decentralization.

Built on the Ethereum blockchain, the API3 operates as an ERC-20 token and can be procured on leading crypto exchanges such as Binance, OKX, and KuCoin.

One of API3s remarkable innovations is the Airnode. This oracle middleware by API3 serves a crucial role in the blockchain landscape. Oracles have historically been the bridge that brings external data to blockchains. The caveat, however, is that centralized oracles can sometimes be susceptible to manipulations.

API3s Airnode offers a transformative solution, connecting blockchain-based smart contracts with external data, all while emphasizing data integrity and transparency. This oracle middleware provides several unparalleled advantages:

In essence, API3s Airnode stands out as a monumental advancement in the blockchain and smart contract domain. It bridges the chasm between on-chain and off-chain data sources.

As the rallying momentum builds around #API3, the crypto community is in for potentially thrilling times ahead. Nonetheless, due diligence remains the order of the day for all potential investors.

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Original post:

Why Is API3 Pumping Today? Are You Late To Buy In Right Now? - Captain Altcoin