By
Bena Ilyas
April 23rd, 2024
Indirectly influenced by Elon Musk’s space company, the Starlink crypto more than doubled its worth in a few days, following satellite launch.
A crypto, named after Elon Musk’s SpaceX Starlink satellite, surged by over 140% in three days. This came about after the actual space tech company launched 53 orbit satellites into space (the earth’s lower orbit).
The digital currency StarLink (STARL) began its rally on November 13th, going up 13.70% on the same day the satellite launched. Twenty-four hours later, it was up by an additional 69%, and by November 15th, the token had gone up by another 27%. This resulted in a grand total of a whopping 140% on net returns on investments in just barely three days, according to OKEx.
It appears that traders played up the obvious name relationship between the digital currency and the space company. They orchestrated a bullish rampage of STARL while also attempting to leverage the satellite launch event by SpaceX. Although, it is worth noting that StarLink (STARL) operates as a stand-alone crypto initiative and has no ties to SpaceX’s satellites.
Starlink Founder Elon Musk Partly Responsible for Success of the Namesake Crypto
A lot of the enthusiasm surrounding STARL can be attributed to Starlink’s (the space company) founder and CEO Elon Musk. The charismatic billionaire wields considerable influence over the crypto marketplace. In addition, he played a substantial part in the emergence of meme tokens and the entire phenomenon surrounding it. Some typical examples are the canine-themed duo Dogecoin and Shiba Inu.
Musk initially seemed to endorse DOGE earlier this year after tweeting in favor of the token. This subsequently led to a massive price surge that saw DOGE reach a record high of $0.76 by May 2021. At the time, this represented a laudable 15,700% year-to-date rally. In addition, Musk also began to help stir up enthusiasm for DOGE’s direct rival SHIB. His cryptic tweets about his own pet dog Floki, a Japanese breed called Shiba Inu, after which the coin is named, caused the namesake token to spike. By the end of October 2021, SHIB’s year-to-date returns amounted to about 375%.
Musk also invested in Bitcoin, the most prominent digital currency, through his electric vehicle manufacturing company Tesla (NASDAQ: TSLA). The car company was partly responsible for hiking up the price of BTC from about $39K in February 2021 to approximately $65K by April 2021. However, Musk also infamously criticized BTC over its detrimental carbon emissions, and analysts generally attribute that to the consequent May 2021 crypto plunge.
Yet still, another digital currency named after Musk, called Dogelon Mars (ELON) experienced a massive surge of over 4,200% in October. This is further proof that the Tesla CEO and current world’s richest man is indeed influencing the crypto space.
Takeaway from StarLink’s (STARL) Recent Surge
Although STARL experienced a substantial rise in price, the crypto still lacks meaningful price momentum. The price charts suggest that STARL has higher highs but a downward sloping relative strength index (RSI). This points to a bearish divergence due to the lack of momentum.