Dogecoin is currently navigating a challenging market, experiencing a price retreat despite exhibiting a technically bullish "golden cross." Compounding its woes, an AI-driven blockchain project, Qubic, has controversially announced Dogecoin as its next Proof-of-Work target, raising significant security concerns following Qubic's recent attack on Monero.
Dogecoin's Stalled Momentum Amid Price Drop
Despite a seemingly optimistic "golden cross" — where its 50-day moving average crossed above the 200-day moving average — Dogecoin has failed to sustain upward momentum. The meme coin witnessed a 6% decline within a 24-hour period, falling from $0.24 to $0.22. Intraday volatility spiked to 7% as a mid-day rally quickly succumbed to late-session selling pressure. The loss of the crucial $0.23 support zone leaves DOGE vulnerable to further downside, with market analysts now pinpointing $0.2165 and $0.2150 as the next key support levels. This downturn is primarily attributed to strong selling conviction, evident in volume analysis showing increased activity during price breakdowns rather than recovery attempts.
Whale Accumulation vs. Technical Resistance
Interestingly, Dogecoin's price struggles occur despite continued aggressive accumulation by "whale" wallets. In August alone, these large holders added 680 million DOGE, bringing their total holdings close to 100 billion tokens, marking a multi-month high. This suggests a long-term bullish outlook from significant investors. However, this whale accumulation has yet to translate into a sustained upward price trajectory, largely due to repeated rejections at the $0.24 resistance level, which continues to weigh on short-term market sentiment.
Qubic's Controversial Targeting Sparks Security Concerns
The latest blow to Dogecoin's stability comes from Qubic, an AI-driven blockchain project, which has declared DOGE its next Proof-of-Work target. This announcement follows Qubic's recent controversial 51% attack on Monero, enabling block reorganization and transaction manipulation, leading to platforms like Kraken suspending Monero deposits. With Dogecoin commanding a market capitalization exceeding $35 billion, the stakes are considerably higher. A successful attack could severely disrupt transactions, facilitate double-spending, and erode investor confidence across the Dogecoin network. While some experts contend that Dogecoin's vast network makes it less susceptible to such attacks, others caution that Qubic's stated intentions alone are a significant red flag for the broader cryptocurrency industry, adding an unprecedented layer of external threat to DOGE's market dynamics.
DOGE Outlook: Make-or-Break at $0.23
Dogecoin's immediate future hinges on its ability to reclaim and hold the $0.23 level. A failure to do so could open the door to deeper losses, particularly if Qubic intensifies its efforts against the network. Traders are closely monitoring derivatives positioning, investor behavior, and broader global trade tensions, all of which continue to exert pressure on risk assets, including cryptocurrencies.
