KEY TAKEAWAYS

• The GameStop (GMEGA) memecoin crashed to new lows.

• GamStop’s (GME) stock trades inside a symmetrical triangle.

• Can the GameStop stock break out and drag the token with it?

GameStop is back in the spotlight, but its stock and memecoin tell two very different stories this time.

While the GMEGA token continues to slide toward fresh lows, GME stock is coiling for a potential breakout.

Traders are now closely watching to see if the stock can spark another breakout and whether the token will follow suit.

Gamestop Price Crashes

The GMEGA price has fallen under a descending resistance trend line since its all-time high in December 2024.

While the GameStop memecoin bounced at the $0.000045 horizontal area multiple times, it never broke out from the diagonal resistance (red icon).

Today, the GameStop token has again fallen into the $0.000045 area, risking a breakdown.

Combined with the diagonal resistance, the horizontal area creates a descending triangle, considered a bearish pattern. 

A breakdown that travels its height will take the GameStop memecoin to a new all-time low of $0.000017

Momentum indicators are also bearish. The Relative Strength Index (RSI) is below 50 while the Moving Average Convergence/Divergence (MACD) is negative.

As a result, a breakdown and new lows are likely for the GameStop token’s price, which could begin a free fall with a close below $0.000045.

Can GME Break Out?

The GME outlook is not as bearish as the one for the GameStop token.

GME broke out from a diagonal resistance trend line in June 2024, ending a nearly three-year correction.

Since then, the GME price has traded inside a symmetrical triangle.

While these triangles are considered neutral patterns, they often lead to continuation. Since the triangle transpires after a breakout, it is likely to lead to a similar movement.

If that happens, the main resistance area will be at $85, very close to the 2020 highs.

Different Paths

The GameStop token looks poised for more downside unless the price can bounce, while the GME stock is coiling for a potentially explosive move.

If GME breaks higher, it could reawaken the meme hype cycle; however, if not, the token may continue to unravel toward new lows.