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ALPACA’s meteoric rise has left the cryptocurrency community stunned. The token’s price surged a staggering 3,660%, surpassing even the most optimistic predictions. However, beneath this facade of unbridled growth lies a stark reality – ALPACA’s rally is a bull trap, expert analysts warn.
The precipitous climb, fueled by an unprecedented short squeeze, has led many investors to chase the token’s dizzying heights. However, this frenzy will ultimately prove disastrous for late entrants. The fundamental weakness underlying the token’s price movement cannot be overstated – Alpaca Finance’s TVL plummeted 40% between April 20 and 25, a stark indication of protocol trust erosion.
Binance volumes for ALPACA skyrocketed by 350%, an unmistakable sign that this rally is driven not by value or innovation, but rather speculative overflow. In other words, the price movement has been artificially inflated, fueled by leverage, timing, and exit mechanics.
As a result, investors are advised to approach the current price with extreme caution. The token’s daily chart paints a vivid picture of engineered madness, as it appears to have broken out of all logical resistance levels. Fibonnacci retracement analysis indicates immediate resistance near $1.07, followed by another crucial level at $1.22 and a key resistance at $1.55.
While some may be tempted to jump into this rally, it is essential to recognize that once whales exit their positions, the token will experience a catastrophic crash. This will not be a gradual correction but a brutal reversion that will wipe out retail traders who have entered the market too late. Support zones, which initially seemed promising, will ultimately break under the weight of this impending collapse.
In conclusion, ALPACA’s price surge has been engineered by whales to create a short squeeze and redistribute pain among late entrants. It is essential for investors to recognize the red flags surrounding this rally and avoid falling prey to the impending trap.
Source: https://coinchapter.com/alpaca-soars-3660-as-bitcoin-ethereum-stall-2025s-biggest-bull-trap/
