GameStop takes lead over Dogecoin with impressive rally – What now?

GameStop's social dominance outpaced Dogecoin's, driving higher demand. GME exhibited overbought conditions, signaling a potential decline to $0.15, while DOGE displayed bearish momentum.

GameStop (GME) outperformed Dogecoin (DOGE) and other memecoins in the market from June 8th to 9th. According to CoinMarketCap, GME's price surged by 28.25% over the previous 24 hours.

It's important to note that the GameStop being discussed here is not the same as the GME stock. Rather, it's a memecoin created on the Solana blockchain in honor of GameStop stock trader Keith Gill.

At the time of writing, GME was valued at $0.19 with a market capitalization of $124.66 million. While GME saw an uptick, many other memecoins, including DOGE, experienced notable declines.

Hype Surrounding GME

AMBCrypto pinpointed the factors behind GME's performance. The cryptocurrency's social media visibility remained high, while DOGE's discussions lagged behind.

Social dominance, a key metric, highlighted this disparity. According to Santiment, Dogecoin's social dominance stood at 1.881%, while GameStop's was significantly higher at 4.754%.

This difference suggested that demand for GME might surpass that of DOGE. Notably, GME's social dominance had declined from 13.20% on June 7th.

Potential Downturn for DOGE and GME

The Relative Strength Index (RSI) was examined to assess the validity of the overbought conditions observed in GME. RSI measures momentum, indicating whether a cryptocurrency is in a bullish or bearish trend.

Oversold and overbought conditions are also reflected in the RSI. Readings below 30 indicate oversold, while values above 70 suggest overbought.

At the time of writing, GameStop's daily RSI was 81.65, indicating overbought conditions. This potentially signifies increased profit-taking, which could lead to a price drop to $0.15.

For Dogecoin, the RSI was 42.05, suggesting bearish momentum. The combination of declining demand and bearish momentum could result in a fall toward $0.12.

However, this prediction is contingent upon continued selling pressure. If buying interest resurfaces, Dogecoin's price could potentially rise to $0.16.

Long-Term Prospects

GameStop's market capitalization remains considerably lower than Dogecoin's. Additionally, GME's narrative may not have the same staying power as Dogecoin's.

While memecoins often rise and fall in popularity, Dogecoin has consistently remained among the top 10 cryptocurrencies. It is likely to maintain its position for the foreseeable future.