Solana-based GME Coin (GME), a memecoin not to be confused with GME stock in homage to the 2021 GameStop short squeeze, has surged more than 150% in the past 24 hours, reaching $0.029 on June 7.
Interestingly, prices exploded after Keith Gill, also known as Roaring Kitty, announced his return to YouTube on June 7 after a three-year hiatus.
GME memecoin surges 750% in one week
Gill was a central figure in the original GameStop short squeeze series in 2021, and his recent activity online has reignited interest in GameStop-related investments. For example, the price of the GME cryptocurrency has surged more than 730% since June 2, when Gill originally revealed that he had begun trading shares of the video game retailer GameStop again.
The stock’s share price also soared following Gill’s revelations, rising more than 110% since June 2.
Keith Gill’s YouTube announcement network lacked specific details about his discussion topics or whether he plans to reveal new investment positions. Nonetheless, this sparked widespread speculation that he was bullish on GameStop stock.
The anticipation surrounding Gill’s return has created excitement within the investor community. For example, one trader made $1.5 million by investing $2 million worth of Solana’s native token SOL into GME memecoin.
Related: Roaring Kitty’s $300M GME Position Sparks Market Manipulation Claims
Gill’s livestream is scheduled to begin at noon New York time. This could further impact market sentiment towards GameStop stock and its copycat cryptocurrency tokens.
Selling news?
GME coin is at risk of facing a massive price correction in the coming days, primarily after Gill’s YouTube livestream.
The “sell the news” phenomenon is a common phenomenon in financial markets, where prices rise in anticipation of a major event and then fall sharply after the event. Investors often buy in anticipation of positive news and then sell their positions to lock in profits when the news is announced, causing prices to suddenly fall.
For example, in May 2021, the price of Dogecoin (DOGE) plummeted 25 minutes after its biggest supporter, Elon Musk, mentioned it on Saturday Night Live. Originally, Memcoin hit an all-time high an hour before the show opened.
June GME Technical Analysis
From a technical perspective, Solana’s GME token is overbought, with a daily relative strength index (RSI) reaching around 82.
This elevated RSI level suggests that the token could face a strong correction in the coming days as the market reacts to excessive price surges similar to the 80% price correction in May.
Additionally, GME is forming a bearish divergence between rising price and falling RSI momentum on the daily chart, indicating that buying has dried up among bullish traders. This further increases the prospects for a price correction for Solana Memecoin.
If a pullback occurs, GME’s immediate downside target for June is around $0.228, which is in line with the 1.618 Fibonacci retracement level.
However, if the cryptocurrency experiences a bigger correction like in May, the main downside target could be the 50-day exponential moving average (50-day EMA, red wave) at around $0.005, an 80% decline from current price levels.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.