Capital Rotation: From Memecoins to GameFi?
The beginning of 2026 will be remembered as the wild week of memecoins. Within just a few days, the sector recorded a 23% surge, adding $8 billion to its global market capitalization. PEPE led the charge with a weekly gain of 65%, followed by DOGE (+20%) and SHIB. It was total euphoria, typical of an irrational bull run beginning.
However, as is often the case in crypto, the smart money never stays static. While dog tokens enter a correction and profit-taking phase, liquidity is massively shifting toward projects offering real utility. This is where Power Protocol ($POWER) comes in, a GameFi infrastructure project that just smashed through its technical resistance levels to enter price discovery.
Why is Power Protocol ($POWER) exploding now?
This vertical rally is not due to chance. Unlike baseless speculative movements, $POWER’s surge is backed by solid fundamentals and a major announcement. The protocol recently formalized a strategic investment of $3 million from Bitkraft Ventures, one of the most respected funds in the gaming sector. This capital injection validates the project’s technology, which aims to provide turnkey on-chain infrastructure for third-party game studios, thus avoiding the creation of isolated and fragile economies.
From a technical standpoint, the movement is textbook. The token broke its previous ATH (All-Time High) with massive volume, triggering a cascade of liquidations for short sellers (short squeeze). Moving from the $0.40 zone to peaks near $1.66 in less than 48 hours, $POWER not only outperformed the market but also signaled the potential awakening of the entire GameFi sector, which had long remained in the shadows.
In the short term, two bearish CVD divergences indicate profit-taking. Additionally, the trendline break in LTF should push the token toward the $1.33 support, or even to $0.85 if the latter gives way. A bounce in the $1.33 zone is worth watching.
Is the GameFi sector on the verge of a new bull cycle?
Power Protocol’s explosion could be the catalyst the market was waiting for. In 2021, it was Axie Infinity that launched the season; in 2026, the approach is more mature. Investors are no longer looking for simple inflationary “Play-to-Earn” games, but sustainable infrastructures capable of supporting complex economies. $POWER’s success suggests the market is ready to revalue these technological assets after a long bear market.
If the trend confirms, other tokens linked to gaming infrastructure (like IMX, GALA, or RON) could benefit from this halo effect. Traders are now monitoring charts looking for similar breakout configurations, hoping to capture the next wave of liquidity before it becomes too obvious to the general public.
How high can $POWER’s price go?
In the short term, two bearish CVD divergences indicate profit-taking. Additionally, the trendline break in LTF should push the token toward the $1.33 support, or even to $0.85 if the latter gives way. A bounce in the $1.33 zone is worth watching.
As long as the token maintains above $1.35, the trend remains bullish and so does the momentum.
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