You might’ve heard that Binance is delisting ALPACA coin – and normally, when a coin is about to be removed from a big exchange, its price drops. Right?
But this time, something unexpected happened…
ALPACA price actually exploded!
Let's see what actually happened
What Happened?
Binance announced that it will remove ALPACA from trading by May 2. Right after the news, the coin dropped more than 50% – as expected.
But suddenly, the price shot up from the ashes like a crypto phoenix – going up over 650% in just a few days. That’s crazy for a coin about to be delisted!
Why Did It Pump Instead of Dumping?
Here are 3 simple reasons:
1. Short Squeeze Mayhem
Lots of traders bet on ALPACA’s fall by opening short positions (making money if price goes down).
But when the price went up unexpectedly, they panicked and started buying to close their shorts — which pushed the price even higher.
2. Binance Changed the Rules
Binance changed how funding fees work for ALPACA trades. Instead of settling every 8 hours, they made it hourly, and capped the fee at 2%.View Annoucement here
That made it expensive to keep shorting the coin, so traders closed their shorts quickly — again helping the price spike.
3. Whales Played Smart
Big players (called whales) saw the panic and bought ALPACA when it was low.
Then, as the price went up, they made huge profits by selling high — both on spot and futures trades.
What Can We Learn from This?
The crypto market is full of surprises — even bad news can turn into profit for smart players.
Don’t blindly follow the crowd. Understand the market mechanics before trading.
Whales often use fear and panic to scoop up cheap coins — and they’re usually one step ahead.
Final Words:
What happened with ALPACA is a perfect example of how crypto markets aren’t just about charts — they’re about psychology, timing, and strategy.
Stay sharp. Learn from every twist. And always manage your risk.