Solana-based GME (GME), a squeeze-honoring memecoin, soared

Solana-based GME (GME), a memecoin homage to the 2021 GameStop short squeeze and not to be confused with GME stock, rose more than 150% in the past 24 hours to $0.029 on June 7 .

Interestingly, the price exploded after Keith Gill, aka Roaring Kitty, announced his return to YouTube on June 7 after a three-year hiatus.

GME memecoin rose 750% in one week

Gill was a central figure in the original short-lived GameStop saga of 2021, and his recent online activity has reignited interest in GameStop-related investments. For example, GME cryptocurrency prices have risen more than 730% since June 2, when Gill revealed that shares of the original video game retailer GameStop had started trading again.

Daily performance chart of GME/USDT stocks versus GME stocks. Source: Commercial View

The stock values ​​of these stocks also increased following Jill’s revelations, increasing more than 110% since June 2.

Keith Gill’s YouTube announcement lacked specific details on what would be discussed or whether he planned to reveal any new investment positions. However, this sparked widespread speculation that he is bullish on GameStop shares.

The anticipation surrounding Jill’s return has generated excitement within the investment community. For example, one trader made $1.5 million by investing $2 million of Solana’s native SOL token into the GME memecoin.

Related: Roaring Kitty’s $300M Position in GME Sparks Allegations of Market Manipulation

Jill’s live stream is scheduled to begin at noon New York time. This could further impact market sentiment towards GameStop shares and its counterfeit crypto tokens.

Performance of GameStop-based memecoins over the past 24 hours. Source: CoinMarketCap

Selling news?

GME is still likely to face massive price corrections in the coming days, especially after Gill finishes his YouTube live stream.

The phenomenon of “selling the news” is common in financial markets, where prices rise in anticipation of a major event and then fall sharply once the event has passed. Investors often buy in anticipation of positive news, then sell their positions for profits once the news is released, causing prices to suddenly drop.

For example, in May 2021, the price of Dogecoin (DOGE) dropped 25% minutes after its biggest supporter, Elon Musk, mentioned it on Saturday Night Live. The original memecoin hit an all-time high an hour before the show.

GME Technical Analysis for June

From a technical perspective, Solana’s GME token reached a daily relative strength index (RSI) of around 82, indicating overbought conditions.

This high RSI level indicates that the token could face sharp corrections in the coming days as the market reacts to excessive price rise, similar to the 80% price correction in May.

GME/USDT daily price chart. Source: Commercial View

Additionally, GME is forming a bearish divergence between its high price and the bearish momentum of the Relative Strength Index (RSI) on the daily chart, indicating an exhaustion of buying among bullish traders. This increases the chances of a Solana memecoin price correction.

In the event of a pullback, 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 undergoes a larger correction like in May, its main downside objective could be the 50-day exponential moving average (50-day EMA, red wave) at around $0.005, down 80%. compared to the current price level. .

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

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