Recently, API3 has experienced a rapid surge driven by OEV narratives, soaring from 0.5083 all the way to the strong resistance zone of 0.50-0.55, with a typical V-shaped reversal pattern on the daily chart. It seems promising, but there are many underlying issues.

From a technical perspective, this rally clearly lacks volume support. The RSI indicator has shot into the overbought territory, and the price has deviated significantly from the 200-day moving average. Such a volume-less straight ascent is rarely sustainable in history—usually, after emotional hype, it stalls and weakens.

More notably, the current price has moved far away from the value center around 0.40. According to mean reversion logic, such an extreme deviation will eventually be corrected. The market is currently in a typical sentiment premium stage, with the main force creating false breakouts in the 0.5050-0.5250 range. Once the bullish momentum begins to fade, it will be difficult to sustain further price increases.

If this situation reverses, there will be considerable room for a decline. In the short term, 0.4450 acts as a support, with 0.4000 below. If a panic sell-off occurs, 0.3720 could even become a deeper correction point. After market optimism is realized, it often marks the beginning of risk release. At this point, it’s more prudent to go short on rallies, waiting for the price to naturally fall back, which is a safer trading strategy.