In one bizarre event, a cryptocurrency with the same name as SpaceX’s Starlink series of satellites jumped over 140% when Elon Musk’s space technology company launched 53 of them into lower earth orbit.
Watch Falcon 9 launch 53 Starlink satellites into orbit → https://t.co/bJFjLCzWdK https://t.co/dgHuF6SIZ4
– SpaceX (@SpaceX) November 13, 2021
Written as StarLink (STARL), the little-known crypto rebounded 13.70% on November 13 – the day the satellite launched – an additional 69% the day after, and up to 27% on November 15. The massive upward movement brought STARL’s net investment return by just over 140% in less than three days, as data from the OKEx exchange show.
STARL falls under the “musk effect”
The name alone served as a common denominator between StarLink, the crypto and Starlink, the SpaceX satellite wing. As a result, it appeared that traders were merely pumping the crypto through coordinated efforts while trying to capitalize on SpaceX’s satellite launch event.
Reasons include Musk’s influence on the crypto market, as well as the rise of memecoins and “meme stock” investment phenomena overall.
It started when the billionaire investor tweeted in favor of Dogecoin (DOGE), a meme cryptocurrency that drove the price of the token to a record high of $ 0.76 in May 2021 after a rally of more than 15,700%.
Musk’s decision to invest in Bitcoin (BTC) through his other company, Tesla, also saw the flagship cryptocurrency surge from around $ 39,000 in February 2021 to nearly $ 65,000 in April 2021.
Meanwhile, his criticism of Bitcoin for its alarming CO2 emissions has been viewed by many market analysts as being instrumental in the infamous May 2021 crypto crash.
Additionally, Musk’s cryptic tweeting about his dog, a Japanese breed called the Shiba Inu, helped fuel the price rally for his eponymous token. Traded under the ticker SHIB, the annual return on the cryptocurrency was around 375% by the end of October.
Most recently, another cryptocurrency named after Musk, Dogelon Mars, rose more than 4,200% in October, underscoring how the “Musk effect” has affected crypto markets.
Similarly, meme tokens and dogcoins are flooding the market as price wars intensify
However, according to its whitepaper, StarLink operates as a standalone crypto project with no connection to SpaceX’s satellites.
It presents itself as a “decentralized Metaverse project,” with STARL acting as the official default currency, helping users buy everything from services like games to virtual real estate.
What’s next for StarLink the crypto?
The recent spate of STARL purchases has driven the price higher but has not created adequate price momentum.
As shown in the chart below, STARL’s price has made higher highs through November, but its Relative Strength Index (RSI) is sloping down, drawing lower highs instead. This signals a classic bearish divergence due to a lack of follow-through upward momentum.
As a result, STARL could experience a price correction in the upcoming sessions as its ongoing parabolic support seeks to prevent it from testing the $ 0.00064 downside as an intermediate target.
Still, holding above the mentioned price floor could cause the STARL bulls to retest the token’s record high near $ 0.00087.
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