API3 -3630.19% in 1 Year Amid Protocol Reconfiguration and Market Uncertainty

On SEP 8 2025, API3 dropped by 119.99% within 24 hours to reach $1.0274, API3 dropped by 323.88% within 7 days, dropped by 749.84% within 1 month, and dropped by 3630.19% within 1 year.

(text2img)

API3, the token associated with the API3 protocol, has experienced a dramatic price correction over the past year, driven primarily by ongoing protocol reconfiguration efforts and broader market uncertainty. The recent decline marks one of the most significant drops for the token since its launch, with investors responding to mixed signals from the development team regarding the roadmap for future upgrades.

(text2visual)

The reconfiguration of the API3 protocol includes a strategic pivot to decentralized data infrastructure, aiming to reduce dependency on centralized APIs and enhance user control. While this move aligns with the broader trend of decentralization in the blockchain space, it has also introduced short-term volatility and confusion among token holders. The development team has emphasized the long-term value proposition of these changes, but the immediate impact has been a sharp selloff as market participants reassess the token's utility and future potential.

Technical indicators suggest that API3 is in a deeply bearish trend, with key support levels being tested repeatedly over the past month. The relative strength index (RSI) remains in oversold territory, while the moving average convergence divergence (MACD) shows no sign of a reversal in the near term. These patterns have historically signaled prolonged downward momentum, though they do not confirm a bottom in the asset’s price trajectory.

Backtest Hypothesis

A proposed backtesting strategy aims to evaluate whether a systematic trading approach could have navigated the recent volatility of API3 more effectively. The strategy is designed around a combination of RSI and MACD signals, with specific entry and exit rules based on divergences and crossovers. The hypothesis is that by using these indicators to identify early signs of exhaustion in the bearish trend, a trader could have potentially captured small but strategic recovery windows.

The strategy is rule-based: a long position is initiated when RSI crosses above 30 and MACD shows a positive divergence. A short position is triggered when RSI dips below 30 and MACD exhibits a negative divergence. Stop-loss and take-profit levels are set using a 2:1 risk-reward ratio based on the most recent volatility range. The ultimate goal is to determine whether the strategy would have generated positive returns despite the overall downtrend.

(backtest_stock_component)