The Solana-based memecoin ‘GME’, unrelated to GameStop stock, has experienced a dramatic surge of over 150% in the last 24 hours, reaching $0.029 by June 7. This spike coincides with the announcement of Keith Gill, also known as Roaring Kitty, returning to YouTube after a three-year absence.
Gill’s return has sparked renewed interest in the coin, drawing parallels to past market reactions to influential figures in the crypto space. Analysts caution that such rapid gains often precede significant corrections, akin to the volatility seen with Dogecoin post-Elon Musk’s SNL appearance.
Keith Gill’s YouTube Return Sparks Surge in GME Memecoin and GameStop Stock
Keith Gill, famously known for his role in the GameStop short squeeze of 2021, has recently re-entered the spotlight with his announcement of trading GameStop shares again. Since June 2, when Gill disclosed his renewed interest, the GME crypto has surged by an impressive 730%, while GameStop stock itself has risen over 110%. Investors have been drawn to Gill’s bullish sentiment on GameStop, despite his YouTube announcement lacking specifics on new investment positions or discussion topics.
GME/USDT versus GME stock daily performance chart. Source: TradingView
The excitement surrounding Gill’s return has been palpable in the investor community, with one trader reportedly earning $1.5 million from a $2 million investment in Solana’s SOL, which translated into the GME memecoin. Gill’s upcoming livestream, scheduled for noon New York Time, is anticipated to further influence market sentiment towards both GameStop shares and related crypto tokens.
GameStop-based memecoins performance in the last 24 hours. Source: CoinMarketCap
Potential Price Risk for GME Coin Post-Keith Gill’s YouTube Livestream
Following Keith Gill’s anticipated YouTube livestream, GME coin faces potential volatility and price corrections in the near term. The phenomenon known as “sell the news” could come into play, where prices surge ahead of a significant event and subsequently decline once the event concludes. This pattern is common in financial markets, driven by investors selling off positions to lock in profits after an anticipated event fails to sustain upward momentum.
A notable example occurred in May 2021 when Dogecoin (DOGE) experienced a 25% price crash shortly after Elon Musk mentioned it on Saturday Night Live. The memecoin had reached an all-time high just an hour before the show, showcasing how hype-driven events can lead to rapid price fluctuations.
Potential Price Corrections Ahead for Solana’s GME Token
Solana’s GME token has recently reached a daily relative strength index (RSI) of about 82, signaling overbought conditions from a technical standpoint. This elevated RSI suggests that the token could face significant corrections in the coming days, similar to the 80% price correction it experienced in May.
Moreover, GME is exhibiting a bearish divergence on its daily chart, where its price continues to rise while the RSI momentum declines. This divergence typically indicates a weakening bullish trend and potential exhaustion among buyers, further increasing the likelihood of price corrections for the Solana memecoin.
GME/USDT daily price chart. Source: TradingView
In the event of a pullback, GME’s immediate downside target for June is projected around $0.228, which aligns with the 1.618 Fibonacci retracement level.
However, if more substantial corrections ensue, similar to those seen in May, the token’s primary downside target could extend to its 50-day exponential moving average (50-day EMA) at approximately $0.005. This level represents an 80% decline from its current price level, illustrating the potential for significant price volatility in the coming period.
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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