Solana Memecoin GME Rockets Doubles in One Day
07 Jun, 2024 ● Coin news
The Solana-based GME coin (GME), inspired by the 2021 GameStop short squeeze but distinct from GME stock, has experienced a dramatic increase of over 150% in the past 24 hours, reaching $0.029 as of June 7.
This surge coincided with Keith Gill, also known as Roaring Kitty, announcing his return to YouTube on June 7 after a three-year break.
Gill was a key player in the 2021 GameStop short squeeze. His renewed online presence has sparked a renewed interest in GameStop-related investments.
Since June 2, when Gill disclosed that he resumed trading GameStop's video game retailer shares, the GME cryptocurrency has soared over 730%.
Similarly, the stock of GameStop has also risen significantly, with an increase of over 110% since June 2.
Although Keith Gill's YouTube announcement did not provide specific details about the content he will discuss or whether he will share new investment strategies, it has triggered widespread speculation that he remains optimistic about GameStop stock.
The buzz around Gill's comeback has excited the investing community, illustrated by a trader who turned a $2 million investment in Solana's native token into $1.5 million by investing in the GME memecoin.
Gill's upcoming livestream, scheduled for noon New York Time, could further impact the sentiment towards GameStop shares and related cryptocurrencies.
However, GME coin is potentially vulnerable to significant price corrections soon, especially after Gill's livestream concludes.
The financial market's "sell the news" phenomenon often sees prices escalate in anticipation of an event and plummet afterward. Investors typically buy ahead of expected positive news and sell once it materializes, causing prices to drop rapidly.
For instance, Dogecoin's price plummeted 25% immediately after Elon Musk mentioned it on Saturday Night Live in May 2021, even though it had reached an all-time high just an hour before the show.
From a technical standpoint, the Solana GME token's daily relative strength index (RSI) has hit about 82, indicating it is overbought.
This elevated RSI level suggests the possibility of significant corrections soon, similar to its 80% drop in May.
Moreover, GME is showing a bearish divergence on its daily chart, with rising prices but declining RSI momentum, signaling buying fatigue among its investors and increasing the likelihood of a price correction.
If a pullback occurs, GME's immediate downside target for June is around $0.228, aligned with the 1.618 Fibonacci retracement level.
Should the cryptocurrency face a steeper correction similar to that of May, its primary downside target might be its 50-day exponential moving average (50-day EMA, the red wave) at approximately $0.005, representing an 80% decline from its current price.
Sources:
https://cointelegraph.com/news/solana-memecoin-gme-150-keith-gill-youtube-return
https://www.youtube.com/watch?v=U1prSyyIco0
