Roaring Kitty (DFV) Returns to Reddit, Sends GME and KITTY Tokens Soaring

The GME crypto token formed a God candle on Sep. 6 after Roaring Kitty made a surprise return to Reddit ahead of GameStop's earnings.

The GME crypto token (GME) soared on Sep. 6 after Roaring Kitty, the meme stock influencer, made a surprise return to X ahead of GameStop’s earnings.

The token’s price surged to a high of $0.0052, notching its highest swing since June 24 and marking a 93% gain from its intraday low. The token has now risen by 168% from its lowest level in August, making it one of the best-performing cryptocurrencies in the market. Its market capitalization surged to above $32 million.

Meanwhile, GameStop’s stock also rose by over 3.7%, even as a sea of red spread in the broader market, with the Dow Jones and Nasdaq 100 indices falling by 0.90% and 2.43%, respectively. Bitcoin (BTC) dropped to $53,000 while the market cap of all coins fell below $2 trillion.

This performance came after Keith Gill, better known as Roaring Kitty, returned to X with the post below, sending the GME token soaring. The thinly traded Roaring Kitty (KITTY) token also formed a God candle, rising by over 65%. A God candle is a sudden bullish candlestick that catches traders off guard.

pic.twitter.com/9xPMBKesNV

Gill, a value investor, rose to fame for his role in the meme stock frenzy of 2021. Most recently, in May, he returned to the market, pushing meme companies like GameStop, AMC, and Faraday Future sharply higher.

Gill’s return is especially notable because it comes as GameStop is set to announce its financial results on Sep. 10. Analysts have low expectations for the company as its business continues slowing down.

On average, analysts expect the company’s revenue to have dropped from $1.10 billion in Q2’23 to $895 million this year. The company faces major headwinds as more gamers opt to buy games and consoles online and as operations costs rise.

It remains to be seen whether the GME and KITTY tokens will be able to sustain the ongoing rally. Historically, such gains have been short-lived. In May, the GME token soared from $0.0035 to $0.029 after Roaring Kitty’s return, only for the token to erase all those gains within a few days. It dropped to a record low of $0.0017 in August.

Similarly, KITTY surged to $0.093 amid the hype and then fell by almost 100% to a low of $0.0013 by August.