In a strange event, a cryptocurrency of the same name as SpaceX’s chain of satellites, Starlink, jumped more than 140% when Elon Musk’s space company launched 53 of them into Earth orbit.
The mysterious cryptocurrency, written as StarLink (STARL), surged 13.70% on November 13, the day the satellite was launched, another 69% the next day, and 27% on November 15. The massive upward movement gave rise to STARL. A net return on investment of just over 140% in less than three days, according to data from the OKEx exchange.
STARL/USDT daily price chart. Source: TradingView
STARL falls under the “mask effect”.
The name alone was the common denominator between StarLink Krypton and the Starlink SpaceX satellite wing. As a result, it turns out that traders are pumping cryptocurrency only in a coordinated effort, trying to monetize the launch of the SpaceX satellite.
Some of the reasons include Musk’s impact on the cryptocurrency market, as well as the rise of memcoins and the phenomenon of “meme-stock” investing in general.
It all started with a billionaire investor tweeting for Dogecoin (DOGE), the crypto-meme that drove the token price to a record $0.76 in May 2021 after rising 15,700% this year.
Musk’s decision to invest in Bitcoin (BTC) through his other company, Tesla, also boosted the major cryptocurrency from $39,000 in February 2021 to nearly $65,000 in April 2021.
Meanwhile, his criticism of Bitcoin for its worrying carbon footprint is significant to many of the market analysts behind the infamous cryptocurrency in May 2021.
BTC/USD daily price chart showing the impact of Elon Musk on the bitcoin market. Source: TradingView
In addition, Musk’s cryptic tweet about his Japanese dog Shiba Inu helped drive up the price of his name. When trading under the SHIB Index, the annual return of the cryptocurrency at the end of October was around 375%.
Recently, another cryptocurrency named Musk, Dogelon Mars, surged more than 4,200% in October, highlighting how Musk’s impact has affected the cryptocurrency markets.
Related Topics: Meme and dog coins flood the market as price wars intensify.
However, StarLink operates as a separate encryption project, according to its white paper, without connecting to SpaceX satellites.
It is a “Decentralized Decentralized Project” with STARL as the official standard currency and helps users buy everything from services like games to virtual real estate.
What is the next step for StarLink Cryptocurrency?
The recent acquisition of STARL raised the price but failed to generate sufficient price momentum.
As seen in the chart below, STARL price made higher highs during mid-November, but the Relative Strength Index (RSI) declined, making lower highs instead. Indicates a classic bearish divergence due to lack of follow-through momentum.
STARL/USDT 2-hour price chart. Source: TradingView
As a result, STARL may undergo a price correction in the upcoming sessions as its persistent parabolic support attempts to prevent it from testing $0.00064 as a temporary bearish target.
However, holding the aforementioned lower price may force the STARL bulls to test the token’s rally once again around $0.00087.