Gamestop (GME) has been experiencing wild market fluctuations reminiscent of the 2021 meme stock frenzy. In the past three weeks, the stock has seen price tops aligning with euphoric crowd FOMO.
Consequently, social volume and hype have become critical markers for price reversals. This has caught the attention of crypto investors, with Roaring Kitty’s involvement adding to the intrigue.
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Massive Market Swings and Speculative Hype
Santiment, a crypto behaviour analytics firm, highlighted the dramatic swings in Gamestop’s stock price, comparing it to the 2021 peaks driven by speculation. “Roaring Kitty and $GME have seen massive swings like it’s 2021 all over again,” Santiment tweeted.
The asset’s speculative nature means that social volume and hype are now great indicators of potential price reversals. Over the last three weeks, price tops have almost perfectly coincided with euphoric crowd FOMO.
The Kobeissi Letter also reported on the extreme volatility of GME, noting a 25% pre-market decline that turned positive by the market open. In a span of just six hours, GME’s market cap swung approximately $15 billion. “Over the last 6 hours, $GME has gone from being up 40% to down 25% and now up 2%,” the tweet mentioned. This means $2.5 billion in market cap moved per hour, highlighting the insane volatility.
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Show more +Current Market Status of GME
At tpress time, GME trades at $0.01687 with a daily trading volume of $507,147,936.20. This reflects a 36.10%% dip in the last day, yet a 352.57% increase over the past seven days. This recent surge followed by a sharp decline underscores the unpredictable nature of GME’s market performance.
The influence of social media on GME’s price movements cannot be overstated. Major price tops and reversals have been driven by social media hype and crowd sentiment.
As Santiment pointed out, the price swings lately have mirrored the heightened social volume, making it a valuable tool for predicting price movements. Moreover, investors are keenly observing social media trends to gauge future price actions.
Read also: Why is The Crypto Market Down?With market swings reaching up to $15 billion in a mere six hours, GME remains a highly unpredictable asset. Besides, social volume has emerged as a key indicator of price reversals, reflecting the nature of this meme stock.
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