Dogecoin Price Drops 4% as Qubic Targets DOGE, Support at $0.21 in Focus
Dogecoin (DOGE) fell 4% on Monday, extending last week’s pullback and getting closer to the $0.21 support zone.
Quick overview
- Dogecoin (DOGE) fell 4% on Monday, nearing the $0.21 support level, with potential losses extending to $0.18 if this level is breached.
- Qubic Protocol has targeted Dogecoin following a 51% attack on Monero, raising security concerns for the popular memecoin.
- On-chain data indicates a significant drop in holder profits, with many selling at a loss, reflecting increased selling pressure.
- Technical indicators show DOGE is at a critical point, with a potential bounce back to $0.24 if it holds above $0.21.
Dogecoin (DOGE) fell 4% on Monday, extending last week’s pullback and getting closer to the $0.21 support zone. A close below this level could accelerate losses to the next weekly support at $0.18.
This comes after Qubic Protocol, a community driven blockchain project, voted to target Dogecoin after the 51% attack on Monero (XMR). Sergey Ivancheglo, Qubic’s lead developer, confirmed the vote on X, saying Dogecoin was chosen over other proof-of-work tokens, including Kaspa (KAS) and Zcash (ZEC).
By getting a majority of the mining power Qubic showed it can disrupt blockchain networks. Now targeting Dogecoin raises security concerns for one of the most well known memecoins.
On-Chain Data Shows Holder Losses
Beyond external threats, on-chain data shows a weakening outlook for DOGE. Santiment’s Network Realized Profit/Loss (NPL) metric dropped sharply last week from 2.68 million to -271.41 million, its biggest drop since July 2022. The negative reading means holders are selling at a loss, often a sign of capitulation.
Coinglass derivatives data also shows bearish sentiment:
- Long-to-short ratio at 0.79, its lowest in over a month, means traders are betting on the downside.
- Short interest is rising, if support levels fail.
Together these signals show increased selling pressure and reduced confidence among both long term holders and active traders.
Dogecoin Price Faces Test
Technically Dogecoin is at a crossroads. It was rejected at $0.24 on Thursday, fell 9% and then bounced back a bit over the weekend. At the moment DOGE is at $0.21, where support has held so far.
Momentum indicators show no conviction:
- RSI: 50, neutral.
- MACD Lines: Converging, no strong bias.
If DOGE closes below $0.21, analysts say it will slide to $0.18. If it holds this level it could bounce back to $0.24.For now, it’s a two front war for investors: Qubic’s network risks and on-chain selling. DOGE to be tested.
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