GameStop Stock Rises by 18% Following Speculation of Bold Bitcoin Investment
Within the last 24 hours, GameStop [GME] has experienced a surge of 23.97% driven by shifting market sentiment, resulting in a weekly increase of 65.44%.
In order to reach a break-even point for the month, GME will need to rally an additional 23.08%. Despite the prevailing bullish sentiment in the market, sustaining further gains will necessitate the recapture of a crucial support level.
This move could potentially trigger a remarkable rally of 178%.
GameStop Joins Other Companies in Embracing Digital Currency
GameStop, a prominent video game retailer, has seen a 23% surge as of the latest update, spurred by reports indicating the company’s interest in delving into cryptocurrency investments.
Sources have suggested that GameStop is contemplating the addition of Bitcoin to its investment portfolio, alongside exploring various promising alternative cryptocurrencies. This revived enthusiasm may have been ignited by Bitcoin’s significant surge of 129.70%, skyrocketing from a low of $47,710.01 on February 12 to an all-time high exceeding $109,000.
GameStop’s recent decision follows its earlier ventures into the realm of cryptocurrency and NFTs. The company had inaugurated an NFT marketplace in 2022, which was later discontinued in 2023 due to regulatory uncertainties.
Now, the retail giant joins the expanding cohort of institutions venturing into the digital asset space.
Notable examples include Semler Scientific, a medical software company holding 3,192 BTC, and MicroStrategy, helmed by Bitcoin supporter Michael Saylor, which possesses 478,740 BTC.
Can the Momentum of the Surge be Sustained?
Remarkably, GME appears poised to establish a new market peak after breaching the resistance line of the descending channel from which it recently emerged. Typically, this development should propel the asset back to its position at the commencement of the channel on December 8, 2024.
However, reclaiming the support level at 0.0025 is crucial before further upward movement can be sustained.
If GME successfully regains this level, it could potentially witness a surge of 178%, reaching $0.0070 and setting a new precedent. Conversely, a failure to remain above this support level might see GME reverting back to the descending channel.
An analysis of the Relative Strength Index (RSI), a metric gauging the speed and scale of recent price shifts, reveals that it has entered the bullish territory with a current reading of 50.82.
If the RSI continues its upward trajectory, GME stands a chance at maintaining its surge.