The GME memecoin, based on Solana blockchain, has seen a remarkable surge of over 150% in the last 24 hours, reaching $0.029 on June 7. This coin pays homage to the 2021 GameStop short squeeze and should not be confused with the GME stock.
The price spike was triggered by the return of Keith Gill, also known as Roaring Kitty, to YouTube on June 7 after a three-year absence. Gill played a significant role in the original GameStop short squeeze saga of 2021, and his recent online activity has reignited interest in GameStop-related investments. Since Gill’s announcement that he has resumed trading GameStop shares, the price of GME crypto has surged by over 730% since June 2.
Gill’s YouTube announcement did not provide specific details on his discussion topics or future investment positions. However, it has sparked speculation that he is bullish on GameStop stock. This has created excitement within the investor community, with one trader making $1.5 million by investing $2 million worth of Solana’s native token SOL into GME memecoin.
Gill’s upcoming livestream, scheduled for noon New York Time, is expected to impact market sentiment towards GameStop shares and its associated crypto tokens. However, there is a risk of significant price corrections for GME coin in the days following the livestream, a phenomenon commonly known as “sell the news.”
From a technical perspective, Solana’s GME token has reached an overbought condition with a daily relative strength index (RSI) of approximately 82. This suggests that the token may face strong corrections in the near future, similar to the 80% price correction it experienced in May. Additionally, GME is showing a bearish divergence between its rising price and falling RSI momentum on the daily chart, indicating potential buying exhaustion among bullish traders.
Should a pullback occur, GME’s immediate downside target for June is around $0.228, aligning with the 1.618 Fibonacci retracement level. However, in the event of a more significant correction like in May, the primary downside target could be its 50-day exponential moving average (50-day EMA) at approximately $0.005, representing an 80% drop from the current price level.
It is important to note that this article does not offer investment advice or recommendations. All investment and trading decisions involve risks, and readers are encouraged to conduct their own research before making any decisions.