Why Alpaca Finance (ALPACA) Price is Up Today?

While most coins tend to crash at the mere rumor of a major exchange delisting, ALPACA has defied expectations by going against the trend. Recently, Alpaca Finance’s ALPACA token stole the spotlight. In less than eight hours, its price skyrocketed by 422%, surprising many investors.

This surge comes as the broader crypto market turns green and Bitcoin hovers around $95K. With Bitcoin performing strongly, short-term profit traders are now eyeing low-cap assets like ALPACA, which have become attractive opportunities for quick gains.

A Sudden Drop and a Big Bounce

It all started when Binance announced it would delist ALPACA along with three other tokens. Following the news, ALPACA crashed by over 90%, falling as low as $0.18. Traders panicked, thinking the project might be done for. However, the coin quickly bounced back dramatically, jumping to nearly $0.95, a 422% gain in less than a day.

The Short Squeeze Effect

One big reason for this crazy rally was a short squeeze. After the delisting news, many traders placed bets that the price would fall. But when it started rising instead, those traders had to buy back the token quickly to avoid losses. This pushed the price up even more.

Delisting Triggers Frenzy

While a delisting usually signals the end for many altcoins, in ALPACA’s case, it ignited a speculative frenzy. Traders rushed in, hoping to catch a quick rebound before Binance officially removes the token on May 2. The result was a tug-of-war between buyers and sellers that pushed prices to extreme levels.

Timeline of Chaos

After Binance’s initial delisting plans were announced on April 24, ALPACA’s price became extremely volatile. It first dropped 52%, then jumped 171% on the same day. The next few days saw similar moves, a 245% spike, followed by another surge that nearly doubled the price again. But from April 27 to 29, the token trended down until a surprise move from Binance adjusting its funding rate limit to ±4% set the stage for today’s explosive rally.

Though the future of ALPACA is still unclear. While the token saw a sharp rise, it was largely driven by speculation and short-term trading activity. With Binance delisting the token on May 2, ALPACA holders now face an uncertain road ahead.