Alpaca Finance (ALPACA) Experiences Over 2,000% Surge in One Week: What's Behind It?

Alpaca Finance (ALPACA) experienced an unexpected 2,300% price surge in a week, despite Binance's delisting announcement. This significant rally has led the Relative Strength Index (RSI) into the overbought territory with a ratio of 93.

The sudden surge might be due to a short squeeze, where traders, anticipating a price fall, were forced to repurchase tokens to avoid further losses, pushing the price up. However, this could lead to a significant price decline as forced buying ends and demand decreases. Another contributing factor could be Alpaca Finance's burning program, which has removed approximately 18.6% of the maximum ALPACA token supply from circulation.

Despite the rally, traders should be cautious as the high RSI indicates a potential bearish scenario.