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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