Can GameStop (GME) Price Lead Meme Coin Rally To $1?
Select cryptocurrencies are strongly in the green in the first week of June despite the sluggish directionless movement exhibited by Bitcoin price, Ethereum, and other major altcoins. Meme coins like GameStop (GME) price and Notcoin (NOT) show potential to rally to new highs despite being very new in the market.
GameStop (GME) Price On The Move After 50% Surge
GameStop is a meme coin that was recently incepted to pay homage to the GameStop Corp (GME) stock. Considered a meme stock, GME attracts immense interest from investors who target drastic price increases.
The Stock started to rally due to reports of a post by “Roaring Kitty,” an investor with a substantial stake in the video game company. Shares of GameStop skyrocketed to $44 on Monday from $22, marking a 50% upsurge.
According to reports, the massive increase in the stock followed a Reddit post of a screenshot linked to Keith Gill. The investors claimed to have bought 5 million GME shares, representing almost 2% of the firm’s $100 million value.
Although the validity of the post was not confirmed, GME shares exploded before crashing again to trade at $27 on Tuesday.
Investors in the crypto market also rushed to the GameStop (GME) meme coin, pumping to $0.0185—a 384% increase in price. However, profit-taking quickly erased the gains, resulting in a crash to $0.008.
GameStop (GME) meme coin now exchanges at $0.012 after another attempt to mirror the gains on Monday suddenly stopped at $0.014.
Based on the technical indicators on the four-hour chart, GME could face further correction during the US session on Tuesday.
The Moving Average Convergence Divergence (MACD) indicator is in the process of validating a short-term bearish outlook. Traders would be watching out for the blue MACD line to cross below the orange signal line, validating the downturn. Reducing histograms to the neutral line further tightens the bearish grip on GME.
Trading below the daily open of $0.014 is another bearish signal to consider when trading GameStop crypto. Should support at $0.01 hold, a recovery may ensue, thus igniting another rally to $0.0185.
Conversely, losing the same level of support may pave the way to more intense losses, backed by investors wanting to take profits or protect their capital.
The 20-day Exponential Moving Average (EMA) in blue is in line to provide support at $0.0094 while the 50-day EMA at $0.0071.
Bottom Line
Investing in meme coins exposes investors to high volatility. Quick gains can be made with the GameStop (GME) price surge to $0.0185. On the other hand, a downturn could increase losses and even cripple investors. Nonetheless, GME still shows potential and with enough support, the meme coin could hit a new all-time high closing in on $1 in the coming weeks.
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