Memecoins
GameStop Takes Advantage of Dogecoin With Impressive Rally – What Now?
- GameStop’s social dominance was higher than that of Dogecoin, leading to higher demand.
- GME was overbought, indicating a possible decline to $0.015 while DOGE momentum was bearish.
Stoppage of play [GME] stole the show Dogecoin [DOGE] and other memecoins on the market between June 8 and 9. According to CoinMarketCap, the price of GME increased by 28.25% in the last 24 hours.
However, it should be emphasized that the GameStop discussed here is not the same as GME stock. Instead, it is a memecoin developed on the Solana blockchain. It was built in honor of GameStop stock trader Keith Gill.
At press time, GME’s value was $0.019 with a market cap of $124.66 million. As of this writing, GME has been climbing while many memecoins, including DOGE, have seen notable slowdowns.
More Cat Hype
AMBCrypto discovered the reasons for this service. According to our findings, the attention paid to cryptocurrency was still at a high level. However, for DOGE, discussions about it were nowhere near GameStop.
Social dominance was a measure that proved this position. According to Santiment, Dogecoin’s social dominance was 1,881%. For GameStop, it was 4.754%.
Furthermore, the significant difference implied that GME application could remain higher than DOGE. Beyond that, AMBCrypto observed that the figure was a notable drop from 13.20% on June 7.
Source: Santiment
At that time, GME was hitting a local high. As such, the decline could be a sign that, despite memecoin’s dominance, the token is at a discount.
To check if this is valid, we checked the Relative Strength Index (RSI) on the daily chart. RSI measurements momentumindicating whether a cryptocurrency is in a bullish or bearish threshold.
DOGE and GME will fall
The indicator also shows whether an asset is overbought or oversold. A reading of 30 or less indicates that a token is oversold. However, a reading at 70 or above suggests it is oversold.
At press time, the RSI on GameStop’s daily chart was 81.65, indicating that it was overbought. Profit taking could therefore increase in the short term.
If this happens, the price of the token could drop as low as $0.015. For Dogecoin, the RSI was 42.05, suggesting momentum was bearish.
With decreasing demand and bearish momentum, DOGE could see a decline to $0.12. However, this prediction could be invalidated if buying pressure increases.
Source: Santiment
If this happens, the price of Dogecoin could head towards $0.16. Meanwhile, GameStop’s market remained well below that of Dogecoin.
Additionally, memecoin might not come close to the market value of DOGE. Indeed, the narrative around GME does not seem likely to last.
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Just as several memecoins have come and gone, the GME narrative could fizzle out.
But Dogecoin, on the other hand, could remain one of the top 10 cryptocurrencies until the end of this cycle.