• The ‘Musk effect’ sees cryptocurrency named after SpaceX’s Starlink satellites gain more than 140 percent in three days

  • On Saturday, SpaceX launched 53 StarLink orbit satellites into space, resulting in a supersonic price rally in the StarLink crypto market.

    In an unusual event, a cryptocurrency with the same name as SpaceX’s satellite range Starlink increased by more than 140 percent after Elon Musk’s space technology company launched 53 of them into Earth’s lower orbit.

    Written as StarLink (STARL), the little-known cryptocurrency gained 13.70 percent on the day of the satellite launch, another 69 percent the next day, and up to 27 percent on Nov. 15. According to OKEx exchange data, the massive upside move increased STARL’s net returns on investment by a little more than 140 percent in less than three days.

    STARL is affected by the “Musk effect.”

    The name alone served as a unifying factor between StarLink the cryptocurrency and StarLink the SpaceX satellite wing. As a result, it appeared that traders merely pumped the cryptocurrency through coordinated efforts in order to profit from SpaceX’s satellite launch event.

    Musk’s influence on the crypto market, as well as the rise of memecoins and the “meme-stock” investing phenomenon in general, are some of the reasons.

    It all started with the billionaire investor tweeting in support of Dogecoin (DOGE), a meme cryptocurrency, which pushed the token’s price to a record high of $0.76 in May 2021 after a 15,700% year-to-date rally.

    Musk’s decision to invest in Bitcoin (BTC) through his other company, Tesla, also drove the flagship cryptocurrency’s price up from around $39,000 in February 2021 to nearly $65,000 in April 2021.

    Meanwhile, many market analysts believe that his criticism of Bitcoin over its alarming carbon emissions played a role in the infamous May 2021 crypto crash.

    Furthermore, Musk’s cryptic tweets about his pet dog, a Japanese breed called Shiba Inu, aided the price rally of the token’s name. The cryptocurrency, which trades under the ticker SHIB, had a year-to-date return of around 375 percent as of the end of October.

    Recently, another cryptocurrency named after Musk, Dogelon Mars, increased by more than 4,200 percent in October, demonstrating how the “Musk effect” influenced crypto markets.

    However, according to its white paper, StarLink is a stand-alone crypto project with no ties to SpaceX’s satellites.

    It bills itself as a “decentralized metaverse project,” with STARL serving as the official default currency, allowing users to buy everything from gaming to virtual real estate.

    What is the future of StarLink the cryptocurrency?

    The most recent round of STARL buying has pushed its price higher, but it has yet to generate sufficient price momentum.

    STARL’s price has been forming higher highs throughout November, as shown in the chart below, but its relative strength index (RSI) has been sloping downward, painting lower highs instead. This indicates a classic bearish divergence caused by a lack of follow-through upside momentum.

    As a result, STARL’s price may correct in the coming sessions as its ongoing parabolic support tries to prevent it from testing $0.00064 as an interim downside target.

    STARL bulls may be able to retest the token’s record high near $0.00087 if they maintain their position above the mentioned price floor.

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