Memecoins
Can GameStop (GME) Price Lead Meme Coins Rally to $1 in June?
To select cryptocurrencies are strongly in the green in the first week of June, despite the slow directionless movement shown by Bitcoin price, Ethereum and other major altcoins. Meme coins like the price of GameStop (GME) and Notcoin (NOT) show the potential to reach new highs despite being very new to the market.
GameStop (GME) price moving after 50% increase.
GameStop is a meme coin that was recently designed to pay homage to GameStop Corp (GME) action. Considered a meme stock, GME attracts immense interest from investors targeting drastic price increases.
The stock began to rise due to news of a post by “Roaring Kitty,” an investor with a substantial stake in the video game company. GameStop shares skyrocketed from $22 to $44 on Monday, marking a 50% increase.
GameStop (GME) stock price chart | Yahoo Finance
According to reports, the massive rise in shares followed a Reddit post of a screenshot linked to Keith Gill. Investors said they bought 5 million GME shares, representing nearly 2% of the company’s $100 million value.
While the validity of the post was not confirmed, GME shares exploded before falling again, to settle at $27 on Tuesday.
Investors in the cryptocurrency market also rushed to the GameStop (GME) meme coin, hitting $0.0185, a price increase of 384%. However, profit-taking quickly erased the gains, causing a collapse to $0.008.
The GameStop (GME) meme coin is now trading at $0.012, after another attempt to mirror Monday’s gains suddenly stalled at $0.014.
Based on the technical indicators on the four-hour chart, GME could undergo a further correction during the US session on Tuesday.
GameStop (GME) Price Chart | Tradingview
The Moving Average Convergence Divergence (MACD) indicator is about to validate a short-term bearish outlook. Traders would be watching for the blue MACD line to cross below the orange signal line, confirming recession. The reduction of histograms to the neutral line further strengthens the bearish hold on GME.
Trading below the daily open of $0.014 is another bearish signal to consider when trading GameStop cryptocurrencies. If the support at $0.01 holds, a recovery could occur, thus triggering another rally towards $0.0185.
Conversely, the loss of the same support level could pave the way for more intense losses, incurred by investors looking to make profits or protect their capital.
The blue 20-day exponential moving average (EMA) can provide support at $0.0094 while the 50-day EMA is at $0.0071.
Bottom line
Investing in meme coins exposes investors to high volatility. Quick gains can be made as GameStop (GME) price rises to $0.0185. On the other hand, a recession could increase losses and even cripple investors. Nonetheless, GME still shows potential, and with enough support, the meme coin could reach a new all-time high closing at $1 in the coming weeks.
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