Social media sentiment fuels crypto price action through these mechanisms:  

1. **Retail FOMO Cycles**: Viral trends (e.g., memecoins, Elon Musk tweets) trigger explosive buying—**Dogecoin’s 2021 rally** correlated 89% with Twitter mentions (Santiment data).  
2. **Algorithmic Reaction**: Trading bots scan platforms like Reddit/X, executing trades based on sentiment spikes within **15-30 minutes** of trending keywords.  
3. **Influence Amplification**: Celebrity endorsements (e.g., Snoop Dogg NFTs) or "buy" calls from crypto influencers (50k+ followers) can temporarily boost assets 20-50%.  
4. **Liquidity Magnet**: Trending coins attract exchange listings and derivatives markets, enabling larger capital inflows.