Dogecoin Faces Pressure as Qubic Targets Network Following Monero Attack
Dogecoin (DOGE) experienced a 6% decline, dropping from $0.24 to $0.22 amid heavy selling pressure. Intraday volatility reached 7%, with late-session sell-offs negating a midday rally. Key support at $0.23 was lost, making further downside possible, with traders targeting $0.2165 and $0.2150.
Whale Accumulation Continues
- Whale wallets added 680 million DOGE in August, totaling nearly 100 billion tokens.
- Despite this accumulation, there is no upward price momentum, with resistance at $0.24 affecting short-term sentiment.
- Market analysts caution that if whale accumulation slows, the lack of buyer support may lead to deeper declines below $0.22.
Security Concerns from Qubic
- The Qubic project announced that Dogecoin will be its next proof-of-work target after a controversial 51% attack on Monero.
- This could raise risks for DOGE, potentially disrupting transactions and damaging investor confidence.
- While some believe DOGE's larger network offers protection, concerns remain regarding the intent behind the move.
DOGE Outlook
The future of Dogecoin depends on reclaiming the $0.23 level. Failure to do so could result in significant losses, especially if Qubic intensifies its actions against the network. Traders are monitoring derivatives positioning and global trade tensions impacting risk assets.
Current challenges include both technical vulnerabilities and security risks, making the upcoming weeks crucial for Dogecoin's stability.