- 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.
In a recent turn of events, U.S. video game company GameStop’s (GME) shares have skyrocketed over 640% after retail investor Keith Gill, also known as Roaring Kitty, made a comeback on social media last month.
However, at the time of writing, the stock was down by 0.58%, changing hands at $29.84.
This coincided with short-seller Citron Research’s recent announcement that they have closed their short position in the GameStop stock.
In a 12th June post on X, Citron Research attributed this decision to the “market’s irrationality” and the “cult-like” behavior of GameStop shareholders. It noted,
“Citron is no longer short $GME. It’s not because we believe in a turnaround for the company fundamentals will ever happen, but with $5 billion in the bank, they have enough runway to appease their cult-like shareholders.”
Impact on GME memecoin
While the GameStop-inspired Solana [SOL] memecoin GME usually mirrors the stock’s movement, this time things went a different way as the memecoin saw a 23.81% spike in the past 24 hours at press time, as per CoinMarketCap.
In fact, in the past 24 hours, GameStop memecoin’s price surge has outpaced major memecoins like Dogecoin [DOGE] and Shiba Inu [SHIB]. While Dogecoin saw a 6% increase, Shiba Inu was up by just 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: Santiment
Influence of Gill on GME
Interestingly, both Dogecoin and GameStop share a common trait wherein their prices are influenced by social media figures.
For Dogecoin, it’s often Elon Musk, while for GameStop, it’s Keith Gill, aka Roaring Kitty. Since his return on the 13th of May, Gill has significantly influenced both the stock and the memecoin’s price movements.
However, this influence is not universally appreciated, as highlighted by Former SEC Chair Jay Clayton in a recent CNBC interview where he said,
“It bothers me on many levels— It’s a lot closer to gambling than trading and it is certainly not investing.”
How’s the memecoin performing?
Amidst negative sentiments, analysis of the performance 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 falls below the $0.0157 support level, it could signal an upcoming bearish trend.
Source: TradingView
Notably, AMBCrypto’s analysis of Santiment data showed that indicators like positive sentiment and social volume revealed no clear signs of improving investor sentiment.
Source: Santiment