- In recent developments, the Solana-based memecoin GME, not officially related to GameStop stocks, has soared over 150% in the past 24 hours, reaching $0.029.
- Keith Gill, also known as Roaring Kitty, made a significant return to YouTube on June 7th after a three-year hiatus, which sparked the massive surge in GME’s value.
- The excitement surrounding Gill’s return and the implications for GameStop-related investments have reignited interest among traders and investors.
Discover the latest explosive developments in the crypto market as GME memecoin spikes over 150% following Roaring Kitty’s return to YouTube.
GME Sees a Staggering 7.5x Increase in a Single Week
Keith Gill played a pivotal role in the 2021 GameStop short squeeze phenomenon, and his recent reappearance has significantly impacted the market. Since June 2nd, following his announcement to resume trading GameStop stocks, GME has skyrocketed by over 730%. The value of GameStop stocks has also seen a substantial increase of 110% since his statement.
Although Gill’s YouTube announcement did not provide specific details on potential discussion topics or new investment positions, the consensus on social media is that he is likely returning to trading GameStop stocks. Market participants are eagerly anticipating his live stream, which is expected to cause significant movements in GameStop stocks and related tokens.
Potential for ‘Sell the News’ Phenomenon
The possibility of a major correction looms for GME in the coming days, particularly after Gill’s YouTube live stream concludes. The “sell the news” concept is prevalent in financial markets, where prices rise in anticipation of significant news and fall sharply once the news is released. For instance, Dogecoin (DOGE) experienced a 25% drop in price shortly after Elon Musk mentioned it on Saturday Night Live in May 2021.
Similarly, GME may experience a sharp decline as investors secure profits following the hype generated by Gill’s return.
Technical Analysis of GME
From a technical perspective, GME on the Solana blockchain has reached an overbought condition, indicated by a daily Relative Strength Index (RSI) of around 82. This high RSI level suggests that the token might face significant declines in the coming days, similar to the 80% price correction seen in May.
Additionally, GME is exhibiting bearish divergence on its daily chart, with rising prices and declining RSI momentum. This scenario implies that the buying momentum among bullish traders is depleting, increasing the likelihood of a price correction.
In the event of a pullback, GME’s immediate downside target for June aligns with the 1.618 Fibonacci retracement level at approximately $0.228. However, if a more substantial correction occurs, similar to May’s activity, the primary downside target could be around $0.005, aligning with the 50-day Exponential Moving Average (EMA), representing an 80% drop from the current price levels.
Conclusion
In summary, GME’s recent surge has been largely driven by the reappearance of Keith Gill, rekindling interest in GameStop-related assets. While the short-term outlook appears bullish, the potential for significant corrections remains, especially following major events such as Gill’s live stream. Investors are advised to approach with caution and conduct their own research before making any investment decisions.
