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GameStop Memecoin up 250% Today – Roaring Kitty’s Return Could be The Catalyst

Last Updated June 3, 2024 3:07 PM
Valdrin Tahiri
Last Updated June 3, 2024 3:07 PM

Key Takeaways

  • The GameStop stock price has increased significantly in the pre-market trading hours.
  • GameStop (GME) memecoin increased by 250% today, closing in on an all-time high.
  • Will GME reach a new all-time high, and how much longer will it increase if so?

The GameStop (GME) memecoin first rose to prominence on May 14, when it increased over 1,400% despite having no relation to the company. The memecoin was launched on the Solana blockchain.

A 250% GME price increase started today, on June 3. However, this one was driven by the return of legendary trader “Roaring Kitty.” GME broke out from its corrective pattern and is now approaching its all-time high. Will it reach it, and if so, how much further can it climb?

GameStop Stock Up Pre-Market

The GameStop (GME) stock is up 70% pre-market. In the final week of May, the price broke out from a nearly 1,200-day descending resistance trend line that existed since January 2021. While the price could not sustain the increase that week, it has done so this one.

The increase confirms the correction is over, and a new upward movement has started. The RSI and MACD both support this scenario. The MACD generated a significant amount of bullish divergence (green) while the RSI increased above 50. It is worth mentioning that this is the first time the RSI has increased above 50 since the correction started.

GameStop Stock Price
GME Stock Price | Credit: TradingView

The next resistance is at $64, the final one before the 2021 highs of $120.

Interestingly, the memecoin GME has rallied over 200% today, on June 3. The GameStop (GME) memecoin has no relation to GameStop whatsoever. However, this has not stopped the prices of both assets becoming correlated.

GME Memecoin Rallies

The GME memecoin price had corrected since its all-time high of $0.0197 in May 14. The decrease took the shape of a symmetrical triangle. On June 3, the price increased by nearly 250%, breaking out from the triangle.

The rally was kickstarted from a post by trader Keith Gill aka Roaring Kitty, who posted a UNO reverse card. Roaring Kitty was one of the traders who started  the GME frenzy in December 2020, so the post could mean that he is expecting to “run it back”, meaning a similar rally could happen once more. He posted what he calls a “GME YOLO Update”, where his positions show a $750 million profit.

Both the MACD and RSI legitimize the breakout, since they have moved above 0 and 50, respectively. Also, the wave count suggests GME has completed wave four in a five-wave increase (white). Wave four most often develops into a symmetrical triangle, as noted by the sub-wave count (black).

GME Memecoin Wave Count
GME/USDT 6-Hour Chart | Credit: TradingView

If the count is accurate, the GME price has started the fifth and final wave of this increase. The next target for it is at $0.0295. The 1.61 external Fibonacci retracement of wave four creates it. The target is 135% above the current price.

GME to Reach New All-Time High

The GME rally was likely triggered by Roaring Kitty’s return, but the price action and wave count now support a prolonged increase. So, the most likely future outlook is an increase toward the next target at $0.0295, which will be a new all-time high.

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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