In a bizarre event, a cryptocurrency with the aforementioned proper name as SpaceX'south satellite range Starlink jumped over 140% as Elon Musk's space technology company launched 53 of them into the Earth'southward lower orbit.

Written as StarLink (STARL), the fiddling-known crypto rallied thirteen.lxx% on Nov. 13 — the day of the satellite launch, some other 69% a day afterward it, and by up to 27% on Nov. xv. The massive upside move brought STARL'due south net returns on investment by a little over 140% in only less than 3 days, data from the OKEx exchange shows.

STARL/USDT daily toll nautical chart. Source: TradingView

STARL comes under the "Musk consequence"

The name alone acted equally a mutual denominator between StarLink the crypto and Starlink the SpaceX satellite wing. As a consequence, it appeared that traders merely pumped the crypto through coordinated efforts while attempting to cash in on SpaceX'due south satellite launch event.

Some of the reasons include Musk's influence on the crypto market as well as the rise of memecoins and "meme-stock" investing phenomenon equally a whole.

It started with the billionaire investor tweeting in favor of Dogecoin (DOGE), a meme cryptocurrency, that pushed the token's price to a tape loftier of $0.76 in May 2022 following a fifteen,700%-plus year-to-date rally.

Musk'southward decision to invest in Bitcoin (BTC) via his other company, Tesla, besides led the flagship cryptocurrency upwards from around $39,000 in February 2022 to almost $65,000 in Apr 2022.

Meanwhile, his criticism of Bitcoin over its alarming carbon emissions was considered instrumental by many market place analysts behind the notorious May 2022 crypto crash.

BTC/USD daily price chart featuring Elon Musk's influence on Bitcoin marketplace. Source: TradingView

Additionally, Musk'south cryptic tweeting about his pet dog, a Japanese breed called Shiba Inu, helped fuel the price rally of its namesake token. Trading nether the ticker SHIB, the cryptocurrency'due south year-to-date returns past the cease of Oct came out to be effectually 375%.

Nigh recently, another cryptocurrency named after Musk, namely Dogelon Mars, surged by more than iv,200% in October, underscoring how the "Musk consequence" influenced crypto markets.

Related: Meme tokens and dogcoins flood the market place as cost wars heat upwardly

Nonetheless, per its white paper, StarLink operates as a standalone crypto project, with no connection to SpaceX'southward satellites.

It presents itself equally a "decentralized metaverse project," with STARL acting as its official default currency, helping users to purchase everything from services such every bit gaming to virtual real estate.

What'south next for StarLink the crypto?

The latest bout of STARL buying has pushed its price college but has failed to generate adequate price momentum.

As shown in the chart below, STARL's price has been forming higher highs through the ides of November, but its relative strength index (RSI) has been sloping downward, painting lower highs instead. That signals a classic bearish divergence due to a lack of follow-through upside momentum.

STARL/USDT 2-hour cost chart. Source: TradingView

Every bit a result, STARL may undergo a price correction in the coming sessions as its ongoing parabolic support attempts to keep it from testing $0.00064 every bit an interim downside target.

However, holding to a higher place the said price floor could have STARL bulls retest the token'south record high almost $0.00087.

The views and opinions expressed hither are solely those of the writer and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading movement involves risk, you should deport your own research when making a decision.