Dogecoin tumbled sharply on Tuesday after the Qubic blockchain community voted to target DOGE for a potential 51% attack, days after it claimed responsibility for compromising Monero’s network. Security fears collided with broad crypto weakness, pushing DOGE into heavy sell pressure despite continued whale accumulation.
News Background
• Qubic’s governance forum approved a proposal to direct hashpower toward Dogecoin, raising the possibility of a coordinated 51% attack. The group recently executed a similar move against Monero, successfully disrupting block validation.
• The news fueled jitters across the Dogecoin community, with traders pricing in heightened security risks.
• At the same time, whales accumulated 680 million DOGE in August, showing long-term interest despite the threat.
• Derivatives positioning weakened, with DOGE futures open interest sliding 8%, signaling declining confidence in near-term upside.
Price Action Summary
• DOGE dropped 5% in the 24-hour period from August 19 06:00 to August 20 05:00, falling from $0.22 to $0.21.
• The heaviest selling occurred between 13:00-15:00 UTC on August 19, when DOGE crashed from $0.22 to $0.21 amid 916 million tokens traded — double the 24-hour average.
• $0.22 emerged as a strong resistance zone after repeated rejections, while $0.21 acted as a key support level into the close.
• Overnight action was range-bound, with DOGE oscillating between $0.2120-$0.2130 before closing at $0.2124.
Technical Analysis
• Resistance: $0.22 confirmed as heavy supply zone with high-volume rejection.
• Support: $0.21 holding as a psychological floor, with risk of a $0.208 retest if selling persists.
• Volume: 916 million traded, up 100% over baseline, reflecting panic selling.
• Structure: Range-bound consolidation between $0.2120-$0.2130 in late hours shows uncertainty rather than recovery momentum.
• Futures: Open interest fell 8%, suggesting leverage longs are unwinding.
What Traders Are Watching
• Whether Qubic follows through on its DOGE attack plan after Monero disruption.
• Whale accumulation versus retail capitulation — will large players defend $0.21 support?
• Market reaction to continued declines in derivatives open interest.
• A decisive move above $0.22 or below $0.21 to set next directional bias.