‘Musk effect’ sees crypto named after SpaceX’s Starlink satellites gain over 140% in 3 days

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In a weird occasion, a cryptocurrency with the identical title as SpaceX’s satellite tv for pc vary Starlink jumped over 140% as Elon Musk’s area know-how firm launched 53 of them into the Earth’s decrease orbit.

Written as StarLink (STARL), the little-known crypto rallied 13.70% on Nov. 13 — the day of the satellite tv for pc launch, one other 69% a day after it, and by as much as 27% on Nov. 15. The huge upside transfer introduced STARL’s web returns on funding by a bit of over 140% in simply lower than three days, information from the OKEx trade reveals.

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STARL/USDT each day worth chart. Supply: TradingView

STARL comes underneath the “Musk impact”

The title alone acted as a typical denominator between StarLink the crypto and Starlink the SpaceX satellite tv for pc wing. Because of this, it appeared that merchants merely pumped the crypto via coordinated efforts whereas trying to money in on SpaceX’s satellite tv for pc launch occasion.

A number of the causes embody Musk’s affect on the crypto market in addition to the rise of memecoins and “meme-stock” investing phenomenon as an entire. 

It began with the billionaire investor tweeting in favor of Dogecoin (DOGE), a meme cryptocurrency, that pushed the token’s worth to a report excessive of $0.76 in Might 2021 following a 15,700%-plus year-to-date rally.

Musk’s resolution to spend money on Bitcoin (BTC) through his different firm, Tesla, additionally led the flagship cryptocurrency up from round $39,000 in February 2021 to almost $65,000 in April 2021.

In the meantime, his criticism of Bitcoin over its alarming carbon emissions was thought of instrumental by many market analysts behind the infamous Might 2021 crypto crash.

BTC/USD each day worth chart that includes Elon Musk’s affect on Bitcoin market. Supply: TradingView

Moreover, Musk’s cryptic tweeting about his pet dog, a Japanese breed known as Shiba Inu, helped gasoline the value rally of its namesake token. Buying and selling underneath the ticker SHIB, the cryptocurrency’s year-to-date returns by the tip of October got here out to be round 375%.

Most lately, one other cryptocurrency named after Musk, specifically Dogelon Mars, surged by more than 4,200% in October, underscoring how the “Musk impact” influenced crypto markets.

Associated: Meme tokens and dogcoins flood the market as price wars heat up

Nonetheless, per its white paper, StarLink operates as a standalone crypto undertaking, with no connection to SpaceX’s satellites.

It presents itself as a “decentralized metaverse undertaking,” with STARL performing as its official default foreign money, serving to customers to buy every part from providers akin to gaming to digital actual property.

What’s subsequent for StarLink the crypto?

The newest bout of STARL shopping for has pushed its worth increased however has didn’t generate ample worth momentum.

As proven within the chart beneath, STARL’s worth has been forming increased highs via the ides of November, however its relative energy index (RSI) has been sloping downward, portray decrease highs as an alternative. That alerts a traditional bearish divergence as a result of an absence of follow-through upside momentum.

STARL/USDT two-hour worth chart. Supply: TradingView

Because of this, STARL might bear a worth correction within the coming classes as its ongoing parabolic help makes an attempt to maintain it from testing $0.00064 as an interim draw back goal.

However, holding above the stated worth ground may have STARL bulls retest the token’s report excessive close to $0.00087.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you must conduct your personal analysis when making a choice.