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Highlights
- GameStop Corp. sold 75 million shares on the open market, raising over $2 billion.
- The GME stock price surged by 22%, even with all the dilution.
- GME meme coin also pumped 48%, indicating a correlation between the two financial instruments.
GME Price Analysis: Gamestop price performed well on June 11, increasing by 48% to hit a new local high of $0.022, but later cooled off. This surge coincided with GameStop (NYSE: GME) stock rising by 22% on the same day, raising questions about a possible correlation between the stock and the meme coin prices.
GME meme coin price hovered around $0.0191 during European business hours on Wednesday, a 14% increase in 24 hours and a further 107% increase in 7 days, as per CoinGecko data.
GME Price Analysis: Bulls Ride on GME Stock Hype to Push Meme Coin Counterpart to New Highs
Gamestop price has been trending above the 50-day and 200-day simple moving averages, but dangerously close. After the initial surge in price that saw the meme coin hit an all-time high of $0.032, GME price crashed to $0.014, an over 50% drop in price in less than 24 hours.
Nevertheless, the asset began making higher lows and lower highs, typical of a symmetrical triangle formation. The GME price action is headed toward the end of the triangle, and soon it will be decision time. These types of market structures have a 50/50 chance of breaking upward or downward. However, combined with other factors, the odds may lie in favor of one side over the other.
One factor is that GME price is still in an uptrend despite the recent heavy crash since the price action did not fall below the previous low. A break to the upside may see the meme coin break the previous all-time high and hit $0.034. A key resistance exists around $0.023. On the flip side, GME price may find support around the $0.015 area.
GME Price Sports a Correlation with GME Stock Price
On June 11, GameStop Corp. sold 75 million shares on the open market, raising over $2 billion. This was an at-the-market (ATM) equity offering program, and investors rushed to snatch the shares, resulting in GME stock price surging 22%. On the same day, GME meme coin also went up by 48%, indicating a correlation between the two financial instruments.
Overlaying the GME stock and GME meme coin price charts, it is evident that the meme coin is following the stock price. Both had similar tops around the same time and both are recovering around the same time as well.
The $GME GameStop story is incredible.
They just diluted shareholders with 75M shares.
They now have ZERO debt. $4B in cash.
Market cap is $9B, so half the marketcap is cash. The business is still doing about $3.2B per year in revenue. The stock is up 74% YTD.
The stock… https://t.co/DpewSp9Bzl
— amit (@amitisinvesting) June 11, 2024
According to Amit, an investment expert, the common factor may be Roaring Kitty, a crypto meme coin sensation who is also a GME stock investor.
Bottom Line
These are wild times in the crypto space when meme coins mirror the price movements of stocks. Not long ago, Bitcoin, the king of cryptos, dominated the scene with meme coin mirrioring its price movements. Now, GME meme coin investors are closely watching Roaring Kitty, as his actions could significantly impact their portfolios.
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