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Alpaca Finance (ALPACA) has surged dramatically over the past week, recording a 1,093 percent gain. The price jumped from just above $0.04 to nearly $0.50, briefly spiking to $1.28.
According to CoinMarketCap data, its trading volume reached its highest point at $254.45 million and subsequently declined beyond 70 percent. Although the market has declined, ALPACA maintains its trading position around $0.50.
Source: CoinMarketCap
Trading volume increased rapidly but slowed afterward, creating worries about a turnaround because the RSI daily indicator reached 72.28 in the overbought range.
The recent candle pattern, with its sharp rejection from $1.00, shows that sellers are controlling buyers. When investors cash out at price peaks, this chart movement typically occurs.
Also Read: Ripple Reportedly Makes Shocking Move With Circle USDC – Here’s What Happened
Price activity extending above the upper Bollinger Band indicates that market levels are unsustainable, which might cause traders to reduce their positions and trigger a price correction.
A volume-to-market cap ratio of 342.44 percent indicates potential instability in the system. Most trading imbalances beyond this level seldom persist unless market participants demonstrate renewed support or involvement.
A strong resistance barrier stands at $0.60, so any unsuccessful attempt to break this price point could restrict potential price appreciation.
Source: Tradingview
Whenever momentum runs out of steam, price support exists at around $0.40. Long-term accumulation may experience delays due to increasing holder numbers reaching 77,890 and circulating supply approaching maximum numbers.
Alpaca Finance’s explosive rally has sparked massive interest, but technical signals indicate a likely cooldown. With key resistance holding and volume dropping, the possibility of a sharp correction is increasing. Traders will be watching price action closely in the coming days.
Also Read: Ripple’s $5B Offer to Buy Circle Rejected—Here’s Why It Fell Apart
The post Alpaca Finance Explodes 1,000% in 7 Days — Is a Massive Crash Coming Next? appeared first on 36Crypto.
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