Memecoins
GameStop Takes Lead on Dogecoin With Impressive Rally: Now What?
- GameStop’s social dominance was higher than that of Dogecoin, driving higher demand.
- GME was overbought, indicating a possible decline to $0.015, while DOGE’s momentum was bearish.
GameStop [GME] stole the show Dogemoneta [DOGE] and other memecoins on the market between June 8th and 9th. According to CoinMarketCap, the price of GME has increased by 28.25% in the last 24 hours.
However, it is necessary to clarify that the GameStop referred to here is not the same as the GME stock. Instead, it is a memecoin developed on the Solana blockchain. It was built in honor of GameStop stock trader Keith Gill.
At the time of this writing, GME was valued at $0.019 with a market capitalization of $124.66 million. As of this writing, GME has seen a spike while many memecoins, including DOGE, have seen notable declines.
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AMBCrypto discovered the reasons for this performance. According to our findings, the attention around the cryptocurrency was still at a high level. However, for DOGE, the discussions about it were nowhere near GameStop.
Social dominance was a metric that demonstrated this position. According to Santiment, Dogecoin’s social dominance was 1,881%. For GameStop it was 4.754%.
Furthermore, the significant difference implied that GME application could remain superior to DOGE. On top of that, AMBCrypto noted that the reading was a notable drop from 13.20% on June 7.
Source: Santimento
At that time, GME reached a local high. Therefore, the drop could be a sign that despite the dominance of memecoins, the token is discounted.
To check whether this is valid, we checked the Relative Strength Index (RSI) on the daily chart. RSI measures momentumwhich indicates whether a cryptocurrency is on a bullish or bearish threshold.
DOGE and GME to go down
The indicator also shows whether an asset is overbought or oversold. A reading of 30 or below indicates that a token is oversold. However, a reading of 70 or above suggests that it is oversold.
At the time of this writing, the RSI reading on GameStop’s daily chart was 81.65, indicating that it was overbought. Therefore, profit taking may increase in the short term.
If this happens, the token’s price could drop to $0.015. For Dogecoin, the RSI was 42.05, suggesting that the momentum was bearish.
With decreased demand and bearish momentum, DOGE could see a decline to $0.12. However, this forecast could be invalidated if buying pressure increases.
Source: Santimento
If this were to happen, the price of Dogecoin it could head towards $0.16. Meanwhile, GameStop’s market remained far below that of Dogecoin.
Furthermore, the memecoin may not come close to the market value of the DOGE. That’s because the narrative around GME doesn’t seem likely to last.
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Just as many memecoins have come and gone, the GME narrative may be fading.
But Dogecoin, on the other hand, could remain a top 10 cryptocurrency until the end of this cycle.