Dogecoin Dips as Qubic Threat Sparks Network Security Concerns, Derivatives Activity Slumps
Dogecoin faced renewed selling pressure Tuesday as the Qubic blockchain community approved a controversial proposal to redirect hashpower toward the Dogecoin network, potentially enabling a 51% attack. The move — which follows a similar disruption of Monero’s blockchain — triggered fears over DOGE’s network security and added to broader market weakness.
Despite continued whale accumulation, risk-off sentiment weighed on derivatives markets, sending futures open interest sharply lower.
🧾 Key Developments
- Qubic’s governance forum approved a plan to allocate hashpower toward DOGE, raising the threat of a 51% attack.
- The same group recently claimed responsibility for compromising Monero’s network integrity.
- Whale wallets acquired 680 million DOGE during August, suggesting longer-term positioning despite elevated risks.
- Open interest in DOGE futures fell 8%, reflecting a reduction in leveraged long exposure.
📉 Market Snapshot
- DOGE dropped 5% between August 19 at 06:00 UTC and August 20 at 05:00 UTC, falling from $0.22 to $0.21.
- Heaviest selling occurred between 13:00–15:00 UTC, when DOGE declined from $0.22 to $0.21 amid 916 million tokens traded — nearly twice the daily average.
- $0.22 emerged as strong resistance, while $0.21 held as support into the close.
- DOGE ranged between $0.2120 and $0.2130 overnight, closing at $0.2124.
📊 Technical Picture
- Resistance: $0.22 continues to act as a firm ceiling following multiple rejections.
- Support: $0.21 is holding as a key psychological floor, though a drop to $0.208 remains possible if selling resumes.
- Volume: Trading activity surged to 916 million, doubling the 24-hour average — a clear signal of panic selling.
- Futures: The 8% decline in open interest signals a wave of unwinding among leveraged traders.
🔍 What to Watch
- Whether Qubic executes its DOGE attack plan, following the Monero precedent.
- If whale accumulation can offset retail selling and stabilize prices above the $0.21 support.
- How derivatives markets respond to ongoing uncertainty and slumping open interest.
- A break above $0.22 or below $0.21 could define the next major directional move.
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