news 
Alpaca Finance (ALPACA) Skyrockets by Over 2,000% in a Week: What’s Going on?
In recent market news, Alpaca Finance (ALPACA) has experienced an unprecedented surge of over 2,300%, skyrocketing to its highest level since the end of 2021. As of this writing, it is trading at approximately $1.08 per unit, according to data from CoinGecko.
The dramatic turnaround in the asset’s value can be attributed to a short squeeze triggered by the recent delisting announcement by Binance. Following the news, many investors opened short positions anticipating a significant decline in ALPACA’s price. However, instead of a precipitous drop, the token rallied sharply, forcing these traders to quickly close their shorts by buying back the tokens to avoid further losses and potential liquidations.
This unexpected turn of events has led to an upward spiral, driving the price to unprecedented heights. The phenomenon of short squeezes is well-documented in the cryptocurrency space, where a rapid rise in asset prices often ensues as traders scramble to close their positions and minimize their losses.
Another factor that may have contributed to this surge is Alpaca Finance’s burning program, which has successfully removed almost 35 million ALPACA tokens from circulation. This reduction in supply, combined with steady or increasing demand, could potentially drive prices higher, a fundamental principle of economics.
While these factors have undoubtedly fueled the asset’s rapid growth, investors are advised to exercise caution as the Relative Strength Index (RSI) suggests that the cryptocurrency has entered overbought territory, signaling potential short-term bearish scenario.
Source: https://cryptopotato.com/alpaca-finance-alpaca-skyrockets-by-over-2000-in-a-week-whats-going-on/
