Dogecoin is facing growing uncertainty as Qubic—a blockchain project that previously launched a 51% attack on Monero—sets its sights on DOGE. According to a recent community vote from Qubic, Dogecoin has now been chosen as the next potential target over alternatives like Zcash and Kaspa.

Qubic Community Singles Out Dogecoin for Target

At the time of writing, Dogecoin was priced slightly above 22 cents, marking a 4% drop over the past 24 hours, according to CoinDesk data. Although DOGE registered a bullish golden crossover last week—which usually signals upward momentum—the cryptocurrency has since struggled to maintain gains.

Early Monday, Qubic publicly announced its intention to pursue Dogecoin as its next proof-of-work (PoW) blockchain focus. Posting on X, the team noted that discussions are ongoing and that preparations are in motion. “There are ongoing discussions about $DOGE and preparation will take time,” the post stated. Furthermore, the announcement hinted at broader concerns, noting, “Questions around blockchain resilience are being raised and we may have tools to address them.”

Sergey Ivancheglo, Qubic’s founder and known for his role in the former IOTA project, opened up a community vote on which ASIC-enabled PoW blockchain should be Qubic’s next target for a 51% attack. Among the choices—Kaspa, Zcash, and Dogecoin—the community decisively elected DOGE. Ivancheglo confirmed the vote via his personal X handle, saying, “The Qubic community has chosen Dogecoin.”

This development follows Qubic’s previous success in executing a 51% attack on Monero, which gave it effective control over the privacy coin’s computational power, as reported in a recent article.

Technical Indicators Show Selling Pressure

Dogecoin’s technical indicators also paint a bearish picture. The cumulative volume delta (CVD), adjusted for futures open interest, fell nearly 1% in the last 24 hours. This is the steepest drop among the top 25 cryptocurrencies by market capitalization, as per data from Velo.

The CVD metric tracks the net difference between buying and selling volumes. A declining CVD reflects that selling activity outweighs buying, which analysts often interpret as a strong bearish indicator. Most major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), displayed similar bearish signs on Monday. However, Chainlink (LINK) stood out with a positive CVD, suggesting stronger buying interest.

Bitcoin Falls Below $116K Amid Economic Concerns

Bitcoin also saw significant downward movement, slipping below $116,000. This downturn extends a broader decline from Thursday’s all-time high of over $124,000. One key factor behind the dip is the higher-than-expected U.S. producer price inflation reported last Friday.

This inflation data dampened expectations for a more aggressive 50-basis-point interest rate cut by the Federal Reserve in September. However, a more moderate 25-basis-point cut remains widely anticipated.

Coinbase Institutional analysts commented on the situation in their weekly briefing: “Given the persistent uncertainty surrounding key economic indicators, the Federal Reserve has thus far maintained a cautious stance on interest rate cuts. The recent U.S. Producer Price Index (PPI) for July doesn’t make that any easier.”

They also added a ray of optimism for crypto investors: “We think the Fed’s eventual focus on the broader economic picture, including the labor market, will ultimately lead to 25 bps rate cuts in September and October.”

Federal Reserve Chair Jerome Powell is anticipated to provide more insights during his upcoming address at the Jackson Hole Symposium later this week, which may further shape market expectations for upcoming policy changes.

A chart comparison showing both Dogecoin and Bitcoin experiencing bearish momentum.

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