GameStop’s Solana memecoin, known as GME, has experienced a significant 23.81% increase in its price over the last 24 hours.
This surge follows ongoing influence from prominent social media figures such as Keith Gill and Elon Musk, whose endorsements and discussions frequently impact the prices of memecoins in the cryptocurrency market.
GameStop Shares Surge Amid Citron Research Announcement
GameStop’s (GME) stock has seen a remarkable 640% surge following the resurgence of retail investor Keith Gill, also known as Roaring Kitty, on social media last month. However, as of the latest update, the stock has experienced a minor decline of 0.58%, trading at $29.84.
This surge coincided with Citron Research’s recent decision to close its short position in GameStop. In a post on X dated June 12th, Citron Research attributed this move to what it described as the “market’s irrationality” and the “cult-like” behavior exhibited by GameStop shareholders.
Citron post. Source: X
“Citron is no longer short $GME. It’s not because we believe in a turnaround for the company fundamentals will ever happen, but with $5 billion in the bank, they have enough runway to appease their cult-like shareholders.”
The decision by Citron Research underscores the volatile nature of GameStop’s stock, influenced significantly by social media-driven retail investor sentiment.
GameStop Memecoin GME Surges Amid Social Media Influence
GameStop’s Solana (SOL) memecoin, known as GME, typically mirrors the movements of the stock, but recently diverged with a notable 23.81% spike in the past 24 hours, according to CoinMarketCap.
During this period, GME’s price surge outpaced major memecoins like Dogecoin (DOGE), which saw a 6% increase, and Shiba Inu (SHIB), up by 3.7%.
According to Santiment data on social dominance, there’s a noticeable difference between Dogecoin (DOGE) and the GameStop (GME) memecoin. Dogecoin consistently maintains higher visibility and engagement compared to GME on social media platforms.
Source: Santiment
Both Dogecoin and GameStop share a common trait of being heavily influenced by social media figures. Elon Musk often impacts Dogecoin’s price, while Keith Gill, also known as Roaring Kitty, has been influential for GameStop since his return on May 13th.
However, not everyone views this influence positively. Former SEC Chair Jay Clayton expressed concerns in a recent CNBC interview, stating, “It bothers me on many levels— It’s a lot closer to gambling than trading and it is certainly not investing.”
The influence of social media figures on meme coins like GME highlights the volatile and speculative nature of these assets in the cryptocurrency market.
Analysis of GameStop Memecoin Amidst Negative Sentiment
Recent analysis of the performance of the GameStop-inspired memecoin indicates mixed signals amidst prevailing negative sentiments. The Relative Strength Index (RSI) currently sits above the neutral line, suggesting strong bullish momentum for the memecoin.
However, market analysts caution that if the memecoin’s price dips below the critical support level of $0.0157, it could signal a forthcoming bearish trend, potentially leading to further declines.
Source: TradingView
Additional insights from Santiment data reveal that indicators such as positive sentiment and social volume do not show clear signs of improving investor sentiment at this time. This lack of positive sentiment could contribute to continued uncertainty and volatility in the market for the GameStop memecoin.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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