GME Coin Skyrockets Over 150% After Roaring Kitty’s YouTube Announcement

The Solana-based GME coin (GME), a memecoin honoring the 2021 GameStop short squeeze and not to be confused with the GME stock, surged by over 150% in the past 24 hours to reach $0.029 on June 7.

Remarkably, the price exploded after Keith Gill, also known as Roaring Kitty, announced his return to YouTube on June 7 after a three-year break.

GME Coin Soars 750% In One Week

Gill played a central role in the original GameStop short squeeze saga of 2021. His recent online activity has reignited interest in GameStop-related investments. For example, GME crypto prices have soared by over 730% since June 2, when Gill revealed he started trading the original GameStop videogame retailer’s shares again.

The stock value of those GameStop shares has also jumped by over 110% since June 2 after Gill’s revelation.

Gill’s YouTube announcement lacked specific details on his discussion topics or whether he plans to disclose new investment positions. Nonetheless, it has fueled widespread speculation that he is bullish on the GameStop stock.

The anticipation surrounding Gill’s return has raised excitement within the investor community. For instance, a trader made $1.5 million by investing $2 million worth of Solana’s native token SOL into the GME memecoin.

It could further influence the market sentiment toward GameStop shares and its copycat crypto tokens.

Source: CoinMarketCap

Potential Price Correction Looms

However, the GME coin remains at risk of facing massive price corrections in the coming days, primarily after Gill concludes his YouTube livestream.

The “sell the news” phenomenon often occurs in financial markets, where prices rise in anticipation of a major event and then drop sharply once the event has passed. Investors frequently buy in expecting positive news and then sell their positions to lock in profits once the news is released, leading to a sudden price decrease.

For example, in May 2021, the price of Dogecoin (DOGE) crashed 25% minutes after its biggest proponent, Elon Musk, mentioned it on Saturday Night Live, despite reaching an all-time high an hour before the show.

Technical Analysis for June

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

This heightened RSI level suggests that the token may face strong corrections in the coming days as the market reacts to the overextended price surge, similar to its 80% price correction in May.

Source: TradingView

Additionally, GME is forming a bearish divergence between its rising price and falling RSI momentum on the daily chart, indicating buying exhaustion among its bullish traders. This further increases the Solana meme coin’s price correction prospects.

GME’s immediate downside target for June is around $0.228 if a pullback occurs, aligning with the 1.618 Fibonacci retracement level.

However, if the cryptocurrency experiences a more significant correction like in May, its primary downside target could be its 50-day exponential moving average (50-day EMA, the red wave) at approximately $0.005, down 80% from the current price level.

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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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