Key Insights:
- If downward pressure on GameStop continues, there is a strong possibility that it could drop to the $20.50 level.
- GME’s upside momentum would only be possible if the asset’s price rises and closes a daily candle above the $24 level.
It has been over a week since GameStop’s GME stock has been trading sideways near a key support level of $20.50.
This ongoing consolidation near support follows a sharp 40% price dip, triggered by the company’s recent announcement of its Bitcoin strategy and its plan to acquire Bitcoin using funds raised through convertible bonds.
Why GME Stock Continues to Struggle?
The reason behind GME’s ongoing struggle and recent price drop is its offering of convertible notes to investors.
According to a recent report, GameStop has raised approximately $2.23 billion to $2.38 billion for its Bitcoin treasury strategy and crypto investments through this offering. The notes are set to mature in 2032.
So far, the firm has acquired 4,710 BTC worth nearly $513 million as of May 28, 2025. This substantial Bitcoin purchase follows months of preparation under GameStop’s BTC treasury strategy, which was established on March 2, 2025.
With its growing interest and recent acquisition, GameStop (GME) is now the world’s 11th-largest corporate Bitcoin holder, behind Galaxy Digital and Bitbo, which hold 8,100 and 8,485 BTC, respectively.
GameStop (GME) Current Price Momentum
At press time, GME stock was trading near $23.46, showing modest upward momentum. Last week was favorable for the asset, as it recorded an impressive 5.82% gain.
GME Stock Price Action and Key Technical Levels
According to expert technical analysis, GME stock has been trading sideways between $22.00 and $24.00 for the past eight trading days. This ongoing price consolidation is occurring near a key support level of $20.50.
The daily chart indicates that this support zone has shown a strong history of price reversals since September 2024.
Given the current market sentiment and historical performance, there is a strong possibility that GME stock could experience a price reversal this time as well.
GameStop (GME) Price Prediction
Based on recent price action and historical patterns, if the ongoing geopolitical tensions continue to escalate, there is a strong possibility that GME stock could drop to the key support level of $20.50.
On the other hand, if market sentiment improves and the price breaks out above the upper boundary of the consolidation, closing a daily candle above the $24 level, it could open the door for GME stock to end its prolonged market downturn and gain upward momentum.
Technical Indicators: EMA and RSI Insights
As of now, GME stock price is trading below the 50-day Exponential Moving Average (EMA), which hints at a prevailing bearish trend. This technical setup often signals weakness in momentum and a lack of buyer interest at current levels.
If the price continues to stay below this key moving average, it could invite further downside pressure, potentially retesting lower support zones. Traders and investors typically view this as a cautionary signal, especially when combined with weak volume and broader market uncertainty.
Whereas, GME’s Relative Strength Index (RSI) stands at 36.33, indicating that the stock is approaching the oversold territory.
This suggests that selling pressure has been dominant, and while there may still be room for further downside, a potential price rebound or short-term consolidation could occur if buyers begin to step in at key support levels.