In a dramatic turn of events, Dogecoin (DOGE) has taken a nosedive as the Qubic blockchain community sets its sights on a potential 51% attack. The move comes hot on the heels of Qubic’s recent disruption of Monero’s network, sending shockwaves through the crypto world and triggering a sell-off that saw DOGE prices tumble 5% in a mere 24 hours.
The Qubic Conundrum
Qubic’s governance forum has given the green light to a proposal that could direct massive hashpower towards Dogecoin, raising the specter of a coordinated 51% attack. This has naturally stirred up a hornet’s nest of security concerns among Dogecoin enthusiasts. “The implications of such an attack are profound,” said crypto analyst Sarah Nguyen. “It undermines trust, which is the backbone of any digital currency.”
Despite the gloom, some investors are playing the long game. Notably, crypto whales have snapped up a whopping 680 million DOGE in August, signaling a belief in the coin’s long-term potential, even as futures open interest—a measure of market confidence—has slumped by 8%. This aligns with recent observations in Dogecoin (DOGE) Whales Go Crazy: Further Price Rally Incoming?, where whale activity has been linked to potential future rallies.
Market Mayhem: Price Action and Technicals
The impact of the looming threat was palpable in the markets. Between August 19 and August 20, DOGE dropped from $0.22 to $0.21, with the heaviest selling hitting between 13:00 and 15:00 UTC on August 19. During this period, a staggering 916 million DOGE changed hands, a volume double the 24-hour average. This frenzied activity confirmed $0.22 as a formidable resistance level, while $0.21 emerged as a critical support, albeit one under siege.
In the late hours, DOGE found itself caught in a narrow trading band between $0.2120 and $0.2130, a pattern that suggests uncertainty rather than any clear path to recovery. Traders are keeping a sharp eye on these levels, aware that a decisive move either way could set the next trend. This uncertainty contrasts with the optimism seen in Dogecoin to the Moon? DOGE Price Chart Forms Golden Cross for First Time Since November, where technical indicators suggested a bullish outlook.
The Bigger Picture: Security Concerns and Market Sentiment
The Qubic community’s audacious plans have not gone unnoticed. “If Qubic proceeds with their DOGE attack, it could set a dangerous precedent,” warns blockchain security expert Alex Tanaka. The recent Monero incident has already demonstrated the disruptive power of a well-coordinated assault, and the potential for similar chaos in the Dogecoin ecosystem is causing jitters.
Adding to the anxiety is the decline in derivatives positioning, with futures open interest down by 8%. This suggests that traders are pulling back, perhaps bracing for further volatility or reassessing the risk-reward calculus in light of the unfolding drama.
What Lies Ahead
As the dust settles, the crypto community is left grappling with several pressing questions. Will Qubic follow through on its DOGE attack plans? Can the whales’ appetite for DOGE shore up the $0.21 support, or will retail investors capitulate under pressure? And what of the broader market reaction to the persistent decline in derivatives open interest?
The answers to these questions will shape Dogecoin’s trajectory in the coming weeks. For now, traders are watching closely for any decisive moves above $0.22 or below $0.21—levels that could signal the next chapter in this ongoing saga. As the situation unfolds, one thing is clear: the world of cryptocurrency never fails to keep its participants on their toes.
Source
This article is based on: Qubic’s 51% Attack Plans Trigger DOGE Crash, Futures Open Interest Drops 8%
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
