Market Analysis:
$API3 Faces Heavy Rejection as Supply Thins Out .
The price action for
$API3 is signaling a significant shift in sentiment as the asset stalls following a sharp rejection at overhead resistance. After a failed attempt to push higher, the momentum has clearly shifted in favor of the bears. Recent candlestick patterns are stacking multiple upper wicks, a classic sign that selling pressure is dominant and that every minor bounce is being aggressively absorbed by the market.
The Technical Setup
The market structure currently feels "heavy," with signs that buyers are losing their footing. The lack of follow-through on recent upside attempts suggests that demand is drying up while supply begins to thin out at higher levels. We are seeing a buildup of trapped long positions that will likely come under intense pressure if the immediate support shelf fails to hold.
The Strategy
I have scaled into a short position heavily at these levels, anticipating a rollover. The primary confirmation for a deeper flush will be the loss of the current base. However, should we see a sudden, aggressive absorption of the bid side that defies the current downward pressure, that would serve as the signal to exit the trade.
Trading Parameters:
Entry Zone: $0.3183 – $0.3269
Stop Loss (SL): $0.3370
Take Profit (TP) Targets: $0.3000, $0.2850, and $0.2500
Analysis by
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