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Dogecoin (DOGE) struggled on Monday as fresh pressure mounted from both market sentiment and external threats. The AI-driven blockchain project Qubic, which previously executed a controversial attack on Monero, has now set its sights on targeting Dogecoin’s network. At the same time, Bitcoin dropped below $116,000, extending its decline from last week’s all-time high above $124,000.
Qubic Community Chooses Dogecoin Over Zcash and Kaspa
Early Monday, the Qubic community held a vote on which proof-of-work blockchain should be the next target of its network stress campaign. Out of options that included Kaspa and Zcash, Dogecoin won by a wide margin. Sergey Ivancheglo, Qubic’s founder, confirmed the outcome on X, saying, “The Qubic community has chosen Dogecoin.”
Ivancheglo, known by his handle “Come-from-Beyond,” explained that the initiative is meant to test blockchain resilience, hinting that Qubic may have “tools to address” perceived vulnerabilities in older proof-of-work networks. Just weeks earlier, Qubic carried out a 51% attack on Monero, temporarily gaining majority control over the network’s hashing power. That episode sparked debates around security and decentralization, and Dogecoin now appears to be the next test case.
The Qubic team posted that discussions regarding DOGE had been ongoing, but preparations for an attack could take time. For the Dogecoin community, however, even the suggestion of being targeted adds to bearish sentiment already weighing on the asset.
DOGE Price Action Weakens Despite Bullish Setup
At press time, Dogecoin traded around $0.225, down 4% over the last 24 hours, according to CoinDesk data. Last week, DOGE formed a bullish “golden crossover” — a technical event where the 50-day moving average rises above the 200-day moving average. This pattern is often seen as a long-term bullish signal, but in this case, the price reaction has been underwhelming.
Instead of breaking higher, sellers have dominated the market. Analysts note that the failed follow-through from the golden cross may reinforce bearish sentiment, as traders who expected a rally could unwind their positions.
Technical Signals Point to Selling Pressure
Market data further confirms the selling bias. Dogecoin’s futures open-interest-adjusted cumulative volume delta (CVD) has dropped nearly 1% in the past 24 hours — the largest decline among the top 25 cryptocurrencies by market capitalization, according to Velo.
The CVD indicator measures the balance between buying and selling pressure in derivatives markets. A negative CVD indicates stronger selling activity, which often translates into continued downside in spot prices.
While Bitcoin and Ethereum also showed negative CVD readings, Dogecoin’s sharper decline suggests it is under heavier pressure. By contrast, Chainlink (LINK) stood out as the only major token with a positive CVD, highlighting net buying support in its market.
Bitcoin Slips Below $116,000
Adding to the overall bearish mood, Bitcoin fell below $116,000 on Monday morning. This decline extends a broader correction that began after last Thursday’s record-breaking surge past $124,000.
The pullback coincided with Friday’s hotter-than-expected U.S. producer price inflation (PPI) data, which reignited fears of prolonged higher interest rates. Rising inflation pressures tend to weigh on risk assets, including cryptocurrencies, as investors rotate into safer holdings like government bonds and cash.
Despite the correction, Bitcoin remains in a long-term uptrend, and analysts see the current decline as a natural cooling-off phase after a parabolic run. Still, the pullback has put pressure on altcoins like Dogecoin, which are more vulnerable to shifts in overall market sentiment.
Dogecoin’s Broader Outlook
For Dogecoin, the combination of external threats from Qubic, failed bullish technical signals, and broader crypto weakness raises short-term risks. If sellers maintain control, DOGE could revisit key support levels near $0.20. A break below that level might open the door for deeper corrections.
On the other hand, a recovery in Bitcoin or renewed retail enthusiasm could help stabilize Dogecoin’s price. Historically, DOGE has seen sudden surges of speculative demand, often tied to social media trends. But with current sentiment tilted bearish, traders may remain cautious in the near term.
The Bigger Picture: Blockchain Security in Question
Beyond price action, the Qubic vote underscores an ongoing debate about the resilience of proof-of-work blockchains. While Bitcoin remains relatively secure due to its massive hashing power, smaller PoW chains like Dogecoin may face greater risks from coordinated attacks.
A 51% attack allows malicious actors to reorganize the blockchain, enabling double-spending or halting transactions. Even the threat of such activity can damage investor confidence and weigh on prices.
Qubic’s campaign appears designed to stress-test these networks, but critics argue that deliberately targeting blockchains undermines trust in the ecosystem. Supporters, however, see it as an opportunity to expose vulnerabilities and push projects toward stronger security models.
Conclusion
Dogecoin is once again at the center of controversy. With Qubic’s community selecting it as the next target for network disruption, technical indicators flashing bearish signals, and Bitcoin’s broader decline dragging the market lower, DOGE faces mounting challenges.
Whether Dogecoin can recover depends not only on market sentiment but also on how resilient its network proves to be against external pressure. For now, sellers appear firmly in control, and investors are bracing for further volatility.
