In 2021, the GME stock captured widespread attention, symbolizing the changing dynamics in the financial market.
Its surge in popularity was directly linked to the GameStop phenomenon and the grassroots movement of retail investors challenging traditional financial institutions.
With the resurgence of this movement, developers in the meme sector of the crypto market are capitalizing on it by creating new tokens, such as the GME Token, a token inspired by the GME Stock.
Why did the GME Token Became Popular?
The GME token's popularity can be traced back to the dramatic events of early 2021 when GameStop's stock experienced an unprecedented surge.
Retail investors, coordinated through the Reddit forum WallStreetBets, played a crucial role in this phenomenon. Figures like "Roaring Kitty", also known as Keith Gill, led a massive buying spree of GME stock, resulting in a short squeeze.
Hedge funds that had bet on the stock's decline were forced to buy shares to cover their losses, driving the price even higher.
This David-vs-Goliath narrative resonated with many, symbolizing a challenge to Wall Street's established power.
Riding on this wave of momentum, the GME token emerged, aiming to provide a means for GameStop movement supporters to participate in the cryptocurrency space.
Although not officially affiliated with GameStop, the token quickly became a symbol of the retail investor community's rallying around the stock.
Its appeal lay in the shared sentiment of defying traditional finance and embracing decentralized alternatives.
The WallStreetBets community was instrumental in the rise of the GME token because their presence and popularity boosted the token's visibility and fueled its price increase.
This demonstrated the growing influence of retail investors, empowered by social media and online communities in financial markets.
Despite experiencing volatility in its price, the GME token's significance extended beyond its market value.
Can GME Reach a New High?
The question is, will the GME Token go as high as the stock? To answer that, let’s look at how the GME Stock moved in 2021.
Data available in the market show that the GME Stock rose around 2,000% in its short squeeze era, from $5 to around $80 in less than two months.
However, it went back down again after the hype went down, especially after Roaring Kitty left the market.
Yesterday, the stock went back up by more than 110% in less than 24 Hours after the rumor spread that Roaring Kitty is back actively trading again.
The GME Token experienced a similar thing; however, it did not exist in the 2021 short squeeze era, so its movement was different from that of the stock.
The token was launched in January 2024 and went up more than 10,000% in two weeks. After the price surge, it fell more than 90% and has since been consolidating until yesterday.
At the same time that the stock went up by 110%, the token itself went back up again by more than 3,600% in less than 24 Hours.
This movement has supported GME's new popularity among meme and degen traders, which means that it has the potential to reach a new high.
It currently has more than $3.1 Million of locked liquidity with a market capitalization of $80.9 Million, higher than all stocks-related and WallStreetBets-related meme tokens in the market.
There are currently 125,000 Transactions of GME Token with more than 26,000 traders transacting it.
The count difference between traders who are buyers and sellers is around 5,000 people and 15,000 transactions. However, the volume difference is only $100,00, which means the difference in buying pressure and selling pressure is close.
GME’s Daily Chart / Source: Dexscreener
Looking at the token itself, a correction might happen in the next couple of hours as the token went up significantly.
However, if the trend around the current hype stays, then GME can go up by more than 100% to its new high.
GME must hold the support zone between $0.004343 and $0.008079 as the Fibonacci Retracement Tool suggests that the $0.005 price zone is in line with the Fibonacci Golden Zone of 61.8%.
If the price manages to hold this zone and break the resistance zone between $0.01451 and $0.009917, then the next target is between $0.025 and $0.04, which could be a new all-time high for the token.
But everything depends on the market conditions. The next couple of hours might be volatile for the crypto market, with the upcoming speech from central bank representatives and other macroeconomic data publications.
This means traders must be careful and keep risk management intact to endure the coming volatility.
Investor Caution
While the meme hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.
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