API3 Price Faces Correction After Overbought Levels and Market Dip

The API3 Price has experienced a steep pullback following a week of massive gains. In the last 24 hours, it declined by 11.64% from its recent high.

This decline follows closely after the token’s 86.82% rally within the last seven days.

Source: CoinMarketCap

The coin is now trading at $1.41 with a decrease of 7.36%, while the trading volume has surged by 15% in the last 24 hours.

Traders consider the decline to profit-taking, technical vulnerability, and the general crypto-market downturn.

Technical Correction Signals

• The recent upsurge pushed API3's RSI-14 to 83.02, a reading that indicates the coin was overbought.

• Under usual conditions, when RSI crosses above 70, it indicates that the buyers could be exhausted.

• The API3 Price also fell below an important support at $1.34, which the traders have been keenly observing.

• This pause initiated further selling as most investors chose to book profits or reduce losses. In the short term, staying above $1.34 is regarded as significant.

• If the price keeps going down, the subsequent levels of support are at $1.10–$1.00. However, if the token crosses above $1.34, the selling pressure could slow down.

Derivatives and Market Impact

Volatility in the derivatives market is another key reason for the API3 Price crash. Funding rates for perpetual futures fell to -1.96% on August 19, indicating that most traders were shorting the token.

Open interest is still elevated at $85.71 million, so plenty of money remains locked into leveraged positions.

These conditions tend to develop robust moves. A wave of long liquidations probably worsened the crash, as price dropped below the support.

This was also driven by the overall crypto market, which fell by 1.04% during the same period. Bitcoin dominance rose to 58.98%, showing investors sought shelter.

The Fear & Greed Index also dropped to 45, putting more pressure on altcoins like API3.

Future Prospects: API3's Fundamentals

Nevertheless, despite this recent decline, it has good fundamentals. Its OEV Network, which was launched in July 2024 is aimed at capturing MEV value generating on DeFi protocols instead of letting it fall on the hands of validators.

Its Total Value Secured after the end of 2024 was increased up to 600 million dollars from 20 million.

Technical charts are also advising caution at the same time. The 7-day RSI has increased to 91.07 August 19, the highest level dating back to June 2025.

Exchange Listings

Recent exchange activity was also a major contributor. The Upbit KRW listing prompted a huge pump, driving the token 100% intraday higher to $1.85. Nevertheless, derivatives markets are still fragile, with open interest rising 21% in the past week to $880 million.

New listings might inject liquidity, but they expose markets to higher liquidation risks should funding turn negative once more.

Conclusion

The API3 Price decline represents how quickly the crypto market can change. A large rally in the previous 7 days, overbought levels and general caution took their toll causing the markets to decline.

The basics are positive in the case of OEV Network adoption, and traders should monitor the support level of $1.34. A continuation of the close above key averages will determine whether the rally takes place or a deeper correction ensues.