Roaring Kitty's Comeback Ignites 150% Surge in GME Memecoin; Correction Expected
Summary:
The Solana-based GME coin, a digital currency memorializing the 2021 GameStop short squeeze, has experienced a surge of over 150%. The growth followed the YouTube return of Keith Gill, a significant figure in the GameStop saga. The GME crypto value has soared by over 730% since June 2, corresponding with Gill's announced return to trading GameStop shares. Despite the surge, analysts warn of a potential price correction as part of the "sell the news" phenomenon in financial markets.
The Solana-based GME coin (GME), a digital currency that pays homage to the 2021 GameStop short squeeze, has risen over 150% in the last 24 hours, reaching $0.029 on June 7. This dramatic rise directly followed the announcement of YouTuber Keith Gill, known as Roaring Kitty, of his return to YouTube on June 7, after three years away. The social media influencer was a key player in the 2021 GameStop saga, and his online comeback has sparked renewed interest in GameStop-related ventures. Notably, the value of GME cryptocurrency has soared by a whopping 730% since June 2, when Gill declared his re-engagement with trading GameStop video game retailer shares.
In coincidence with Gill's announcement, the value of the GameStop shares also experienced significant growth, soaring over 110% since June 2. Gill's announcement on YouTube did not go into detail about his topics of discussion or if he intends to unveil any new investment strategies. However, it has prompted wide-ranging conjecture about his optimism towards GameStop stock. The economic community is eagerly anticipating Gill's comeback, with investors making significant money off the GME memecoin, like one trader who made $1.5 million by initially investing $2 in Solana's native token SOL.
Gill's livestream is set for noon New York time and could potentially sway the market sentiment about GameStop shares and its imitative crypto tokens.
However, post Gill's livestream, the GME coin may face considerable downsizing in the coming days owing to the "sell the news" trend prevalent in financial markets. This is a common trend wherein the prices escalate prior to a significant event and then drop sharply once the event concludes.
Last May, for example, the Dogecoin price crashed 25% immediately after Elon Musk mentioned it on Saturday Night Live, despite the meme originator hitting an all-time high an hour before the show.
From an analytical standpoint, the Solana GME token's daily relative strength index (RSI) is around 82, signifying an overbought scenario. This indicates that the token may be subjected to significant corrections as the market responds to the drastic price hike, similar to the 80% price correction seen in May.
Additionally, a bearish discrepancy is forming on the daily chart between the GME's rising price and declining RSI momentum, signifying the potential exhaustion of bullish traders. This accentuates the potential for a price correction in the Solana memecoin.
In case of a potential setback, the immediate lower target for the GME for June rounds up to around $0.228, which falls in line with the 1.618 Fibonacci retracement level. Conversely, if a more drastic correction occurs, similar to the one in May, the primary lower target could be its 50-day exponential moving average (50-day EMA, the red wave) at about $0.005, down 80% from the current price level.
Investors and traders are urged to undertake thorough research before taking any investment or trading decisions, as these activities entail risks.
Published At
6/7/2024 2:50:33 PM
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