- GameStop-inspired Solana memecoin GME witnessed a 23.81% spike in the past 24 hours.
The influence of social media figures like Keith Gill and Elon Musk continues to impact the prices of memecoins.
As an experienced financial analyst, I’ve seen my fair share of market trends and price movements influenced by social media figures and retail investor sentiment. The recent surge in GameStop’s (GME) stock price and the subsequent impact on its memecoin counterpart, GME, is a perfect example of this phenomenon.
Lately, the stock value of American video game corporation GameStop (GME) has experienced a remarkable surge of approximately 640%, instigated by retail investor Keith Gill, who goes by the alias Roaring Kitty, reemerging on social media platforms last month.
However, at the time of writing, the stock was down by 0.58%, changing hands at $29.84.
At the same time, Citron Research revealed they have ended their bearish bet on GameStop’s stock.
In a blog post on June 12th, Citron Research explained the unexpected decision using the terms “the market’s illogical reaction” and “fanatical devotion” exhibited by GameStop’s stock holders.
As an analyst, I would put it this way: “I, as an analyst, no longer hold a short position on $GME stocks. This decision isn’t driven by any optimism regarding Citron’s view of the company’s fundamentals improving. Rather, with their recent cash infusion of approximately $5 billion, they now possess the financial means to keep their dedicated shareholder base content.”
Impact on GME memecoin
As an analyst, I’ve observed that the relationship between GameStop stock (GME) and its memecoin counterpart, Solana [SOL], has typically followed a similar trend. However, an unexpected event transpired in the past 24 hours, as the memecoin experienced a significant surge of 23.81% at the time of press, according to CoinMarketCap, while the stock remained relatively stable.
Over the past day, the price jump of GameStop’s memecoin has surpassed both Dogecoin and Shiba Inu. Dogecoin experienced a gain of 6%, but Shiba Inu only saw a rise of 3.7%.
According to AMBCrypto’s interpretation of Santiment’s social influence data, there is a noticeable difference between the two trends of Dogecoin (DOGE) and GameStop (GME). Specifically, DOGE has been more prominent in social media conversations than GME.
Influence of Gill on GME
It’s intriguing that Dogecoin and GameStop exhibit a similar characteristic: their market prices are significantly impacted by social media trends and influencers.
When it comes to Dogecoin, Elon Musk frequently holds sway, but for GameStop, it’s Keith Gill, also known as Roaring Kitty, who has exerted a substantial impact since his reemergence on May 13th. This influence is evident in the price fluctuations of both the stock and the memecoin.
Yet, this impact is not universally accepted, as Former SEC Chair Jay Clayton made clear in a recent CNBC interview when he stated, “This aspect hasn’t been welcomed by all.”
“On multiple counts, I find this issue troubling. It bears more resemblance to gambling than to trading, and it falls short of true investment.”
How’s the memecoin performing?
In the face of pessimistic opinions, it was noted through examination that the memcoin related to the GameStop phenomenon showed robust buying pressure based on its Relative Strength Index (RSI) being over the threshold for neutrality.
As a researcher studying meme coins, I’ve identified the $0.0157 mark as a significant support level for this asset class. Should the price of a particular memecoin drop below this threshold, it may indicate an impending bearish trend.
According to AMBCrypto’s examination of Santiment data, the signs of enhancing investor sentiment, such as positive sentiment and social volume, were not evidently apparent.
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2024-06-13 09:11