Dogecoin (DOGE) nursed losses on Monday as the community behind Qubic, which recently attacked Monero, voted to target the Dogecoin network over Zcash and Kaspa by a big margin.
At the time of writing, DOGE traded at over 22 cents, representing a 4% decline on a 24-hour basis, according to CoinDesk data. The cryptocurrency chalked out a bullish golden crossover last week, but the bullish pattern failed to inspire bullish momentum.
Early Monday, the AI-focused blockchain project Qubic announced the community’s intention to target Dogecoin on X, stating, “There are ongoing discussions about $DOGE and preparation will take time.”
It added that “questions around blockchain resilience are being raised and we may have tools to address them.”
Sergey Ivancheglo, the founder of the Qubic network, sought a community vote on which application-specific integrated circuit (ASIC)-enabled proof-of-work (PoW) blockchain should be targeted with a 51% attack. From a list that included Kaspa and Zcash, the community overwhelmingly voted for DOGE.
“The Qubic community has chosen Dogecoin,” Ivancheglo, announced on X via his handle Come-from-Beyond.
Qubic recently launched a successful 51% attack on Monero, gaining majority control over the computing power used to secure the privacy network.
DOGE leads CVD decline
DOGE’s futures open-interest-adjusted cumulative volume delta (CVD) indicator has dropped nearly 1% in the past 24 hours, the largest among the top 25 cryptocurrencies by market value, according to data source Velo.
CVD, or Cumulative Volume Delta, is a technical indicator that measures the net buying or selling pressure in a market over a specific period. It is a running total of the difference between buying and selling volume.
A negative CVD indicates that selling pressure is more substantial than buying pressure. This means that a greater number of market participants are selling a particular asset than buying it. It is often seen as a bearish signal, suggesting that the price is likely to drop or continue its decline.
Most cryptocurrencies, including BTC and ETH, have a similar bearish profile. Meanwhile, LINK is the only token, boasting a positive CVD.
BTC Drops below $116K
Bitcoin (BTC), the leading cryptocurrency by market value, fell nearly to $115,000 early Monday, extending the decline from Thursday’s record high of over $124,000.
The decline follows a hotter-than-expected U.S. producer price inflation on Friday, which weakened the case for a 50-basis-point Fed rate cut in September. That said, the central bank is still expected to reduce the borrowing cost by 25 basis points.
“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,” analysts at Coinbase Institutional said in a weekly report.
“Nevertheless, we see this as an opportunity. 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,” analysts added.
Some observers expect the Fed Chair Jerome Powell to lay the groundwork for the September move during this speech at the Jackson Hole Symposium later this week.
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