I have created an API proxy in APIGEE and I want to limit the traffic to the target endpoint based on a value which is being present in the request header. Is it possible to do it
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yes, it sure is.
Check the documentation for that policy, available here.
Here's a screenshot fro that page, showing a configuration example that demonstrates how to use a request header as the identifier for a quota.
See also, this question and its answer.