The “Musk Effect” has great impact on the cryptocurrency community. People buy the name and influence. Anything associated with Elon Musk moons within minutes, for example, the crypto coin StarLink (STARL).
Starlink is one of Space X’s satellites, a company that Elon Musk owns. Following a recent tweet and event on the launch of Starlink, a crypto coin, STARL, came up.
As the satellite launched deeper into the earth’s orbit, so did the coin “launch” into bullish charts. As a result, STARL made a 140% increase within three days. During the day of the satellite’s launch, StarLink(STARL) rose at first by 13.70%. The following day, the coin gained by 69%. Yesterday, 15 November, the currency made a 27% gain.
Reasons For The Massive Pump
Elon Musk is behind the massive gains. His name serves as a price pump accelerator in the crypto community. This is long after coins like Doge, Shiba Inu, and Dogelon Mars. This is called the “Musk Effect.”
Being the wealthiest person on planet earth, Elon Musk has a lot of influence in the crypto space. Anything anyone names after him or anything associated with him gets sudden hype, hence an “investing phenomenon” that causes price pumps with any coin.
According to StarLink’s white paper, the coin has no origin in Space X, Tesla, and Elon Musk. In support of Starlink’s launch, crypto traders and investors jumped onto the crypto coin in a coordinated effort. This was a “buy the news” greed index that resulted in positive gains.
StarLink is a standalone cryptography project that focuses on the decentralization of the metaverse. $STARL is the crypto coin representation of the blockchain. The cryptocurrency enables users to gain access to services in the virtual world, services such as games.
However, the gain failed to sustain STARL’s price momentum. The pump was high but not high enough to break its Relative Strength Index( RSI), which declined to make the coin hit lower highs.
Any cryptocurrency analyst will tell you that this is a classical sign of a bearish divergence. The absence of bullish momentum is a sign of a bearish chart.
When writing this article, $STARL sits at $0.00007283 with a 24-hour trading volume of over $129,246,883. The price is down by -20.1% within 24 hours. Its total circulating supply is 10 Trillion STARL coins and a total supply of 10 Trillion. The platform with the most active sell and buy activities for the crypto coin is Uniswap V2.
Due to the bearish divergence, the coin is likely to experience price corrections in the next few days. This will result from ongoing parabolic support in an attempt to prevent STARL from collapsing to $0.00064 as an intermediate downside target.
However, if $STARL stays above the floor price, the STARL bulls could re-test the token record up near to around $ 0.00087.
Usecase Of The Crypto Coin
StarLink aims to operate as a Metaverse, with a station, “StarLink Station.” The station will exist as a space to:
- Host ideas and data within blockchain, Use $STARL as its native tokens
- Creating new audio and visual adaptations to further NFT representations of the real world and concepts tied to virtual reality within the existing framework.
- A hub for education, marketing, gaming, and entertainment.
Future Of StarLink
It is not easy to make price predictions on coins that moon like this. It is more difficult if Elon Musk has no associations with it. The coin might be a seasonal cryptocurrency that has finalized its cause. However, Elon Musk is full of surprises and might invest in the currency because Elon is also planning more rocket launches in 2021. The coin might be worth holding.