The Solana-based GME coin (GME), a memecoin inspired by the 2021 GameStop short squeeze, has seen a significant surge of over 150% in the past 24 hours, reaching $0.029 on June 7. This sudden increase in price came after Keith Gill, also known as Roaring Kitty, announced his return to YouTube after a three-year absence. Gill, a key figure in the original GameStop short squeeze saga, disclosed that he had started trading GameStop shares again, leading to a surge of over 730% in GME crypto prices since June 2.
The anticipation surrounding Gill’s return has sparked excitement within the investor community, with one trader reportedly making $1.5 million by investing $2 million worth of Solana’s native token SOL into the GME memecoin. However, the GME coin remains at risk of facing significant price corrections in the coming days, particularly after Gill concludes his YouTube livestream. The “sell the news” phenomenon, where prices rise in anticipation of an event and then drop sharply once it has passed, could come into play following Gill’s announcement.
From a technical analysis perspective, Solana’s GME token has reached an overbought condition with a daily relative strength index (RSI) of around 82. This suggests that the token may face strong corrections in the near future as the market reacts to the price surge. Additionally, GME is showing a bearish divergence between its rising price and falling RSI momentum on the daily chart, indicating exhaustion among bullish traders. If a pullback occurs, GME’s immediate downside target for June is around $0.228, with a more significant correction potentially leading to a target of approximately $0.005.
It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions. The market sentiment towards GameStop shares and its associated crypto tokens could be further influenced by Gill’s YouTube livestream, scheduled to begin at noon New York Time. As such, investors should remain cautious and be prepared for potential price fluctuations following the event.
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