GameStop Corp GME has officially wandered into Wall Street's technical “danger zone.” A dreaded Death Cross has formed—when the 50-day moving average dips below the 200-day average—signaling a potentially bearish path ahead.

Chart created using Benzinga Pro

But if you think this is game over for GameStop, think again.

Despite the grim chart pattern, CEO Ryan Cohen appears unfazed. Just last week, he snapped up 500,000 more shares, boosting his stake to 8.4%.

That vote of confidence sent GME stock soaring 11% to $23.49, even as the broader market slumped.

Read Also: Peter Schiff Slams Gamestop’s Bitcoin Strategy As Shares Plummet: ‘Now That All The Fools Have Already Rushed In, Smarter Investors Are Selling’

Bearish Signs Everywhere – Except One

Technically, GME stock is looking rough. It's trading below its five, 20, 50 and 200-day exponential and simple moving averages. The MACD (moving average convergence/divergence) indicator is in negative territory, and the RSI (relative strength index) hovers at a neutral 51.58 – no clear momentum, just drifting.

Analysts call this setup ‘strongly bearish,’ yet there's buying pressure. Enough, perhaps, to fuel a short-term bounce.

Bitcoin, Bonds, Bold Moves

Cohen's share grab followed news that GameStop has added Bitcoin BTC/USD to its corporate investment strategy and plans to raise $1.3 billion via convertible bonds to fund that venture.

Investors initially cheered the crypto pivot, only to balk at the bond offering, sending the stock plunging by 25% before Friday's rebound.

With GME forming a Death Cross, bears may feel vindicated. But as Cohen doubles down and meme stock momentum stirs, traders might want to think twice before calling it quits.

GameStop has a habit of turning chaos into opportunity, and right now, all eyes are on whether it can pull this off again.

Read Next:

• Stocks Set To Continue Crashing After Worst Selloff Since 2020: Tariff Announcement Was ‘100% Smoot Hawley Disguised As Thoughtful Policy,’ Says Expert

Photo: Shutterstock