Alpaca Finance's Price Surges 1858% After Delisting Announcement

Alpaca Finance (ALPACA), the largest leveraged yield farming protocol on Binance Smart Chain, has experienced an unprecedented surge, with its price skyrocketing by 1858% in just one week. This remarkable rally, which saw ALPACA climb from $0.029 to $0.8312, defied market expectations following the announcement that it would be delisted on May 2. The surge was fueled by a powerful short squeeze and the halting of new token issuance, creating a perfect storm for a parabolic rally.

The delisting announcement typically sparks fear-induced selling. However, this time, the market narrative flipped, and instead of a sell-off, ALPACA's price ignited a historic rally, rising from $0.029 to above $0.21 within just 48 hours. This bullish momentum was primarily driven by a short squeeze, where traders who had shorted the token were forced to buy back at higher prices, further fueling the rally. Additionally, the Alpaca Finance team responded to community backlash by scrapping plans to issue more ALPACA tokens and completing its 214th weekly buyback and burn, removing 188,888 ALPACA tokens (~$41,500) from circulation.

Technical indicators suggest that while ALPACA is currently in overdrive, caution may be warranted. On the 4-hour chart, ALPACA’s Relative Strength Index (RSI) sits at 81.38, indicating that the token is deep in overbought territory. This intense bullish momentum signals a potential risk of a sharp correction if sentiment turns. The MACD indicator shows a sharp bullish crossover, with both MACD and signal lines surging upward, confirming strong momentum in favor of the bulls. However, the Fibonacci scale indicates that ALPACA has blown past the 1.618 extension at $0.5207 and is now hovering just above the 2.618 level at $0.8035—a zone where parabolic rallies often cool off. The next key resistance could come near $0.90–$1.00, though a pullback to the $0.52 level (1.618 Fib) would be a healthy retest zone.

The rally in ALPACA's price has been nothing short of extraordinary, defying conventional market reactions to delisting announcements. The combination of a short squeeze and the halting of new token issuance has created a unique environment for the token's price to surge. However, technical indicators suggest that while the momentum is currently in favor of the bulls, there may be a risk of a correction or consolidation ahead. Investors should closely monitor these indicators and be prepared for potential volatility as the market adjusts to the recent surge.