I feel you man! Ive lost momentum a few times because of shi tty tactics like this.
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I would do the disavow as others are suggesting. What do you expect to gain from talking to your competitor though? I suppose you could threaten them or attack them back, but allowing yourself to get dragged into an ongoing vendetta may actually cause more problems than it solves over the long term.
universal4 (30 January 2021)
So the negative SEO campaign has slowed down a little. I have a disavow list featuring app. 210 domains now (using both GSC and Majestic's history and fresh index, and checking all sites manually). Since it seems that the same person has been doing this to other webmasters, I am willing to share my list of domains with anyone who has been targeted in similar fashion. Not sure if it makes sense for any of you guys, but if you feel it does, contact me. My communication via PM here on GPWA is severely limited due to my status as non-sponsor affiliate program, and I don't want to post an email address here. I suggest you go through my website (see profile) and use the Contact us form there if you are interested.
universal4 (16 February 2021)
Are you sure that this is because of negative SEO and not just an update or something else?