GameStop stock rockets 18% – Rumors of a bold Bitcoin bet spark a rally

• A new revelation suggested GameStop may invest in Bitcoin and other altcoins, aligning with broader institutional adoption of digital assets.
• GME’s continued rally depends on reclaiming a key support level.

In the past 24 hours, GameStop [GME] surged 23.97% as sentiment shifted, pushing its weekly gain to 65.44%.

To break even on the monthly timeframe, GME must rally another 23.08%. While market sentiment remains bullish, further gains will require reclaiming a critical support level.

This could potentially fuel a 178% rally.

GameStop joins institutions embracing crypto

GameStop, a leading video game retailer, has surged 23%, at press time, following reports that the company is exploring cryptocurrency investments.

Sources suggest the company is considering adding Bitcoin to its portfolio, while also looking into promising altcoins. This renewed interest may have been sparked by Bitcoin’s explosive 129.70% rally, from a February 12 low of $47,710.01 to an all-time high above $109,000.

GameStop’s move follows its previous foray into crypto and NFTs. The company launched an NFT marketplace in 2022 but discontinued it in 2023, citing regulatory uncertainty.

The retailer now joins a growing list of institutions investing in digital assets.

Notable examples include Semler Scientific, a medical software company holding 3,192 BTC, and MicroStrategy, led by Bitcoin advocate Michael Saylor, which holds 478,740 BTC.

Will the coin keep up its rally?

Notably, GME can establish a new market high, following its breach of the resistance line of the descending channel it just exited. Typically, this should lead the asset back to the start of the channel from the 8th of December 2024.

However, it would need to reclaim the support level at 0.0025 before continuing upward.

Source: TradingView

If GME reclaims this level, it could see a 178% rally, reaching $0.0070 and establishing a new high. However, failure to trade above this support level could result in GME returning to the descending channel.

A closer look at the Relative Strength Index (RSI), which measures the speed and magnitude of recent price changes, shows it has entered the bullish zone with a current reading of 50.82.

If the RSI continues on this upward path, GME could sustain its rally.