Solana’s ‘GME’ Memecoin Soars 150% Before Keith Gill’s YouTube Comeback

Solana-based GME coin (GME), a memecoin that pays homage to the 2021 GameStop short squeeze, has seen a remarkable increase of over 150% within the last 24 hours, peaking at $0.029 on June 7. This dramatic rise occurred immediately after Keith Gill, more famously known as Roaring Kitty, announced his return to YouTube after a three-year break. It’s important to note that GME coin should not be confused with the actual GameStop stock.

GME memecoin’s value has ballooned by an astonishing 750% in a week. Keith Gill was a pivotal participant in the original GameStop short squeeze of 2021, and his recent online activity has reignited interest in GameStop-related investments. For example, the price of GME crypto rocketed by over 730% since June 2, following Gill’s announcement that he has resumed trading GameStop shares. Consequently, the value of GameStop shares has also soared, reflecting a rise of more than 110% since his revelation.

While Gill did not specify what topics he would discuss or if he would reveal any new investment moves during his YouTube announcement, the mere news of his return has sparked rumors and optimism regarding GameStop stock. This excitement is palpable within the investor community, demonstrated by a recent trade where an investor turned a $2 million investment in Solana’s native token into the GME memecoin, yielding a profit of $1.5 million.

Gill’s much-anticipated YouTube livestream is set to commence at noon New York Time. It possesses the potential to further sway market sentiments towards GameStop shares and related cryptocurrencies. As traders and investors prepare for his livestream, there is immense speculation regarding his views and potential market-moving commentary.

There are also reasons to be cautious about the recent surges. GME coin is at risk of experiencing significant price corrections once Gill’s YouTube livestream concludes, a phenomenon known as “sell the news.” This pattern is common in financial markets where prices soar in anticipation of major events and then plummet sharply afterward as traders quickly sell off their positions to secure profits. An example of this occurred in May 2021: Dogecoin’s price dropped by 25% shortly after Elon Musk mentioned it on Saturday Night Live, despite reaching an all-time high just prior to the show.

From a technical analysis standpoint, Solana’s GME token currently shows a daily relative strength index (RSI) of approximately 82, which signals overbought conditions. Such an elevated RSI suggests that the token might face strong corrections in the near future, paralleling its 80% price correction experienced in May. GME is showing a bearish divergence between its rising price and declining RSI momentum on the daily chart, indicating a possible buying fatigue among bullish traders.

This combination heightens the prospects of a significant price pullback for the Solana memecoin. Should a correction materialize, GME’s immediate downside target for June is approximately $0.228, aligning with the 1.618 Fibonacci retracement level. If the cryptocurrency undergoes a more considerable correction similar to the one in May, its primary downside target could approach its 50-day exponential moving average (50-day EMA) at around $0.005, marking a roughly 80% decline from its current price level.

While the recent resurgence in GME coin, fueled by Keith Gill’s notable return, has sparked optimism and excitement within the investment community, traders should also be wary of potential corrections following this renewed interest. The intersection of market enthusiasm, technical indicators, and historical price behavior suggests that both opportunities and risks lie ahead for those investing in the GME memecoin.