How does social media, particularly Twitter and Reddit, impact Dogecoin's price?

How does social media, particularly Twitter and Reddit, impact Dogecoin's price?

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Social media platforms like Twitter and Reddit wield immense power over the dogecoin price, often acting as primary drivers of its volatility. Dogecoin was born from an internet meme and has cultivated a fiercely loyal and active community, predominantly on these platforms. When trending hashtags, viral memes, or influential personalities like Elon Musk post about Dogecoin, it can generate massive speculative interest, leading to rapid price surges. The "Doge Army" on Reddit has, at times, coordinated buying efforts, creating short-term pumps. This phenomenon is often referred to as "meme-driven finance," where collective online enthusiasm and FOMO (Fear Of Missing Out) can override traditional market analysis. However, this also means that negative sentiment or a lack of social media buzz can just as quickly lead to price declines. The reliance on viral trends makes Dogecoin highly susceptible to swift and unpredictable swings, making it a favorite among speculative traders but a challenging asset for long-term fundamental investors.