Memecoins
How GameStop’s Memecoin Toppled DOGE and SHIB with a 24% Spike
- The GameStop-inspired memecoin Solana GME has spiked 23.81% in the past 24 hours.
- The influence of social media figures such as Keith Gill and Elon Musk continues to influence memecoin prices.
In a recent turn of events, shares of US video game company GameStop (GME) skyrocketed more than 640% after retail investor Keith Gill, also known as Roaring Kitty, returned to social media last month last.
However, at the time of writing, the stock was down 0.58%, changing hands at $29.84.
This coincided with the recent announcement by short seller Citron Research that it had closed its short position in GameStop shares.
In a June 12 post on X, Cedar research he attributed this decision to the “irrationality of the market” and the “cultistic” behavior of GameStop shareholders. He noticed,
“Citron is no longer short $GME. It’s not because we believe a change in the company’s fundamentals will ever happen, but with $5 billion in the bank, they have enough ground to please their cult shareholders.”
Impact on the GME memecoin
While the game inspired by GameStop Solana [SOL] memecoin GME usually mirrors the stock’s movement, this time things went differently as the memecoin saw a spike of 23.81% in the last 24 hours at the time of writing this article, as per CoinMarketCap.
In fact, over the past 24 hours, GameStop’s memecoin price rise has outpaced major memecoins like Dogecoin [DOGE] AND Shiba Inu [SHIB]. While Dogecoin saw a 6% increase, Shiba Inu only grew by 3.7%.
However, AMBCrypto’s analysis of Santiment data on social dominance reveals a stark contrast between DOGE and GME, with DOGE significantly overshadowing GME.
Source: Santimento
Gill’s influence on GME
Interestingly, both Dogecoin and GameStop share a common trait where their prices are influenced by social media data.
For Dogecoin this is often Elon Musk, while for GameStop it is Keith Gill, aka Roaring Kitty. Since his return on May 13, Gill has significantly influenced both the stock and memecoin price movement.
However, this influence is not universally appreciated, as pointed out by the former SEC chairman Jay Clayton in a recent CNBC interview where he said,
“It bothers me on many levels: it’s much closer to gambling than trading and it’s certainly not an investment.”
How does memecoin behave?
Amid negative sentiments, performance analysis of the GameStop-inspired memecoin highlighted that the Relative Strength Index (RSI) is above the neutral line, indicating strong bullish momentum.
However, if the memecoin were to fall below the $0.0157 support level, it could signal an impending bearish trend.
Source: TradingView
In particular, analysis of Santiment data conducted by AMBCrypto showed that indicators such as positive sentiment and social volume did not reveal clear signs of improving investor sentiment.
Source: Santimento