A bullish pennant forms — but ALPACA’s history and metrics warn this rally may be too good to be true | Credit: Veronica Cestari
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Key Takeaways
Recent ALPACA rally shows signs of manipulation, similar to its post-Binance delisting.
Santiment data reveals weak volume, undermining confidence in the recent price surge.
Technical patterns suggest a bearish outlook for the token, with the ADX falling to 25.72.
Alpaca Finance (ALPACA) has experienced a wild ride over the past week. The token skyrocketed 350% between July 7 and 14, only to plunge 33% in the past 24 hours.
The sudden drop resembles ALPACA crypto price performance following its Binance delisting, when the token defied expectations by rallying — a move that later investigations by CCN linked to price manipulation.
Now, similar patterns appear to be emerging again. With no significant news to justify the prior surge or the abrupt reversal, speculation is mounting that market manipulation may once again be at play.
If this proves accurate, ALPACA’s price could continue to trend lower.
ALPACA Shoots Up, Then Crashes
On July 7, ALPACA’s price was $0.013. Yesterday, it hit $0.083. However, things have changed today as the altcoin has lost some gains and flashed consecutive red histogram bars.
Following the development, the chart shows that the Alpaca Finance token has formed a bullish pennant. Typically, this pattern should help the altcoin recover in the short term.
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However, that might not be the case, based on the position of several indicators. For instance, the initial ALPACA crypto price increase saw the Bull Bear Power (BBP) spike, indicating notable buying pressure.
But today, the BBP has turned below the zero line, indicating that bears are now in control. If this trend continues, the cryptocurrency’s value might continue to drop.
Santiment data further supports suspicions surrounding ALPACA’s recent price behavior. Over the weekend, the token’s trading volume spiked above $45 million as its price climbed — a move that, at first glance, might suggest growing market interest.
However, a deeper look tells a different story. During ALPACA’s previous surge tied to the Binance delisting, trading volume surpassed $770 million, revealing a sharp disconnect between price action and market participation this time around.
This mismatch suggests that little organic demand drove the rally. As trading volume tapers off, the likelihood increases that the ALPACA crypto price will continue to slide, reinforcing earlier concerns of artificial inflation or manipulation.
ALPACA Price Analysis: Bearish
On the daily chart, ALPACA’s price initially broke above the upper trendline of a descending triangle. But as of now, it is on the verge of sliding below hit and reach the horizontal support.
To add to this bearish outlook, the Average Directional Index (ADX) has fallen to 25.72. This indicates strong directional movement to the downside.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
