GameStop meme coin rally as CEO Ryan Cohen bids $55 billion to buy eBay
- Solana-based GameStop meme coin extends gains for the fourth consecutive day, testing the $0.1000 threshold.
- GameStop bids $125 per share to acquire 100% of eBay Inc in cash and stock, fueling investor sentiment.
- The technical outlook is turning bullish but remains largely driven by short-term market sentiment.
GameStop (GME) meme coin is extending gains toward $0.1000 at press time on Monday, after the NYSE-listed GameStop company offered $55 billion to acquire the e-commerce company, eBay.
GameStop’s bid to acquire eBay amid expansion plans to reach a $100 billion valuation
The Wall Street Journal reported that GameStop could propose an acquisition to eBay as part of CEO Ryan Cohen’s plan to become a $100-billion-plus juggernaut. An official non-binding proposal was submitted on Sunday to Paul Pressler, Chairman of eBay Inc., offering roughly $55 billion for a full acquisition.
The proposed consideration would provide half the value in cash and the remaining value in GameStop stock, with full shareholder election rights.
According to the proposal, GameStop holds roughly $9.4 billion in cash and liquid investments as of January 31. The remaining sum will be funded from debt financing. The proposal also includes a TD Securities letter for up to $20 billion.
GameStop meme coin gains traction
GameStop meme coin is gaining retail strength amid the eBay acquisition noise. CoinGlass data shows that the GME futures Open Interest (OI) has increased by roughly 1100% over the last 24 hours to $2.31 million, reaffirming retail interest in leveraged exposure to the meme coin.
On the other hand, the Santiment data shows GME's social dominance at 1.531% on Monday, up from 0.370% the previous day.
GameStop meme coin trades around the $0.1000 threshold at the time of writing on Monday, extending a five-day rally that amounts to roughly 70% gains. The meme coin faces opposition at the 78.6% Fibonacci retracement level at $0.001037, measured over the downswing from $0.001181 to $0.000560. A decisive close above this level could target the $0.001181 swing high, followed by the 1.618 Fibonacci extension level at $0.001598.
The Moving Average Convergence Divergence (MACD) rises above the signal line as the positive histogram bars expand, both above the zero line, indicating intense upside momentum. At the same time, the Relative Strength Index (RSI) at 82 signals overbought conditions, warning of potential weakening in the buying pressure.
On the downside, the 61.8% and 50% retracement levels at $0.000923 and $0.000844, respectively, serve as crucial support levels.
Author
Vishal Dixit
FXStreet
Vishal Dixit holds a B.Sc. in Chemistry from Wilson College but found his true calling in the world of crypto.
