The memecoin GME, based on Solana and inspired by the 2021 GameStop short squeeze, has seen a remarkable surge of over 150% in the last 24 hours, reaching $0.029 on June 7. This surge came following the return of Keith Gill, known as Roaring Kitty, to YouTube after a three-year break.
Gill was a key figure in the original GameStop short squeeze saga in 2021, and his recent online activity has reignited interest in GameStop-related investments. Since June 2, when Gill announced that he was trading GameStop shares again, the price of the GME crypto has skyrocketed by over 730%. The stock value of GameStop shares has also seen a significant increase, rising by more than 110% since Gill’s announcement.
While Gill’s YouTube return lacked specific details on his discussion topics or investment positions, many speculate that he is bullish on GameStop stock. This anticipation has generated excitement among investors, with one trader reportedly making $1.5 million by investing $2 million worth of Solana’s SOL into GME.
Gill’s upcoming livestream, scheduled for noon New York Time, is expected to further impact market sentiment towards GameStop shares and related crypto tokens. However, there is also a potential risk of a significant price correction for GME coin after Gill’s livestream, as seen in the “sell the news” phenomenon in financial markets.
Technical analysis shows that Solana’s GME token has an overbought condition, with a daily relative strength index (RSI) of around 82. This suggests that the token may face corrections in the near future due to the overextended price surge. A bearish divergence between the rising price and falling RSI momentum on the daily chart further indicates potential price corrections.
If a pullback occurs, the immediate downside target for GME in June is estimated to be around $0.228, aligning with the 1.618 Fibonacci retracement level. However, a more significant correction could see the cryptocurrency dropping to its 50-day exponential moving average at approximately $0.005, down 80% from the current price level.
It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment decisions.