Dogecoin, a popular meme coin, recently experienced significant price volatility following rumors on social media. A fake post claiming the death of Dogecoin’s mascot, Kabosu, led to a 9% price surge to $0.083. The misinformation sparked backlash from investors and was later admitted to be false by the poster, who then deleted the post and their account.
This incident highlights the impact of misinformation on cryptocurrency prices, with Dogecoin’s value fluctuating sharply. The rumor was part of a larger trend of fake news affecting the market, including a fabricated announcement about Bitcoin ETFs by hackers on the SEC’s account.
The false news caused Dogecoin’s price to spike, prompting some holders to sell and profit. However, the coin’s value later dropped, erasing most of its gains, trading at $0.7923 at the time of writing, with an overall bearish trend.
Despite these movements, Dogecoin’s price is often influenced by news flow and social sentiment. Analysis from Santiment shows a stable social volume for Dogecoin, even amidst market fluctuations. However, the weighted sentiment around Dogecoin has declined significantly in recent days, mainly due to a higher number of negative social media comments compared to positive ones.
Despite the increase in negative sentiment, the number of addresses investing in Dogecoin has grown, indicating sustained interest in the meme coin. This could suggest potential for price increases if the current trend continues.