The “Musk Effect” drives the cryptocurrency named after SpaceX’s Starlink satellite by more than 140% in 3 days

In a strange twist of events, a cryptocurrency with the same name as SpaceX’s Starlink satellite stripe soared more than 140% when Elon Musk’s space technology company put 53 of them into low-earth orbit, according to the latest news. tweets Officially on November 13th

The little-known cryptocurrency called StarLink (STARL) rose on November 13th. (the start date of the satellite) by 13.7%, one day later by a further 69% and on November 15. to 27%. Data from the OKEx exchange shows that STARL’s galloping price movement resulted in a net profit of over 140% in less than 3 days.

Daily STARL / USDT Price Chart | Source: TradingView

STARL increase come from “HThe musk effect ” SpaceX

Only the name is common between the StarLink cryptocurrency and SpaceX’s Starlink satellite. Hence, it appears that traders are merely working together to raise prices while trying to capitalize on SpaceX’s satellite launch event.

One of the foundations for this is Musk’s influence on the crypto market as well as the development of coin memes and the investment phenomenon “stock memes” in general.

The story begins with the billionaire investor tweeting the pro-cryptocurrency meme DOGE, which pushed the price of the token to a record high of $ 0.76 in May 2021 after rallying 15.700% since the start of the year.

Musk’s decision to invest in Bitcoin through his company Tesla raised the leading cryptocurrency from around $ 39,000 in February 2021 to nearly $ 65,000 in April 2021.

Meanwhile, his criticism of Bitcoin for its alarming carbon footprint is viewed by many market analysts as the trigger for the infamous May 2021 crypto crash.

The daily BTC / USD price chart shows Elon Musk’s impact on the bitcoin market | Source: TradingView

Additionally, Musk’s cryptic tweet about his dog, a Japanese breed called the Shiba Inu, helped boost the price of the token of the same name. SHIB’s annual profit at the end of October was around 375%.

Most recently, another cryptocurrency named after Musk, namely Dogelon Mars (ELON), rose by more than 4,200% in October, which underscores the influence of the “Musk effect” on the money markets.

However after White paper (White paper) StarLink operates as an independent cryptocurrency project with no connection to a SpaceX satellite.

It is a “decentralized Metaverse project” with STARL acting as the official default currency, helping users buy everything from services such as games to virtual real estate.

What’s next for StarLink cryptocurrency?

STARL’s recent purchases have pushed the price up, but haven’t created the right momentum.

As shown in the chart below, the price of STARL made a higher high in November, but the Relative Strength Index (RSI) is falling, making a lower high. This signals a classic bearish divergence due to the ensuing lack of bullish momentum.

STARL / USDT price chart 2 Hours | Source: TradingView

As a result, STARL price could correct in the coming sessions as parabolic support seeks to keep price from testing $ 0.0064 as a temporary downside target.

However, holding above this level could help the STARL bulls retest the record highs near $ 0.00087.

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