Dogecoin, after peaking at $0.48, has faced a significant
downturn, losing nearly 25% of its value over the past seven days amid broader
cryptocurrency price corrections. Meanwhile, the network suffered a technical
setback as a vulnerability, exploited by Andreas Kohl on Dec. 12, caused 69% of
its nodes to crash, reducing active nodes from 647 to 315. The flaw, dubbed
“DogeReaper,” was disclosed earlier by an X account.
Dogecoin Faces Key Resistance
Dogecoin formed a Double Top at $0.48 on the daily chart.
Following the second rejection, the meme coin produced a bearish engulfing
candle and began its downward movement. During this decline, it broke out at
$0.35, which has since acted as flipped resistance. This level is now a key
area that could play a crucial role in determining Dogecoin’s direction on the
daily chart.
For more details on Dogecoin’s recent price action and its
potential future trajectory, including expert predictions on reaching $1.50 and
even $10 by 2025, read
the full story here.
🚨 BREAKING: Hacker exploits $DOGE flaw, crashing 69% of nodes and exposing a vulnerability that could have taken down the entire network. pic.twitter.com/Bf4Y2stry1
— Cointelegraph (@Cointelegraph) December 12, 2024
Fed Policy Hits Cryptocurrency Market
The Federal Reserve’s recent policy, including a 0.25% rate
cut and Chairman Powell’s cautious stance on future rate cuts, raised concerns
among investors. The
Fed’s forecast of just two rate cuts in 2025 was more conservative than
expected.
This led to a nearly 6% drop in Bitcoin following the
announcement. Global liquidity conditions are tightening, with central banks
reducing balance sheets and rising bond market volatility, negatively affecting
risk assets, particularly Bitcoin and other cryptocurrencies sensitive to
liquidity changes.
DogeReaper Flaw Causes Node Crashes
A vulnerability in the Dogecoin network caused the crash of
69% of its nodes, according to Andreas Kohl, co-founder of Sequentia. Kohl
claimed responsibility for exploiting the issue on Dec. 12, using an older
laptop in El Salvador.
Prior to the incident, Dogecoin reportedly had 647 active
nodes, based on data from Blockchair. Following the exploitation, the number
dropped to 315. The vulnerability, identified earlier by researcher Tobias
Ruck, enabled remote crashes of Dogecoin nodes.
On Dec. 4, an X account named “Department of DOGE
Efficiency” disclosed the flaw, termed “DogeReaper.” The
vulnerability allows attackers to cause node crashes via segmentation faults,
which occur when software improperly accesses memory.
The account suggested that a bad actor could exploit the
flaw to halt the Dogecoin network for days. Coinbase, however, rated the
vulnerability as low risk and awarded Ruck $200 for its identification.
This article was written by Tareq Sikder at www.financemagnates.com.
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