Dogecoin traders react to Thumzup Miner acquisition with massive sell-off

Thumzup made waves in the crypto world with its latest Thumzup Doge miner acquisition, spending $153.8 million in stock to add 2,500 Dogecoin and Litecoin rigs to its portfolio. The announcement sent DOGE soaring briefly before profit-taking cooled the surge, highlighting the market-moving power of institutional crypto moves.

The move highlights how institutional actions can intensify volatility in crypto markets.

Market reaction and profit-taking

DOGE’s price jumped 12% immediately after the announcement but later retraced 2% as traders locked in profits. According to Alex Martinez, analyst at CoinMetrics, “Traders took profits quickly to reduce exposure to potential downside risks.” The pattern mirrors typical sell-the-news reactions in crypto markets.

Thumzup’s pivot toward crypto

Thumzup, originally an ad-tech firm, has shifted toward a crypto treasury model. In July 2025, the company raised $50 million to fund mining operations and direct token purchases. With the Dogehash deal, Thumzup plans to rebrand as Dogehash Technologies Holdings, expanding further into mining.

Institutional influence and filings

Regulatory filings revealed that Donald Trump Jr. owns about 350,000 shares of TZUP stock, valued at roughly $3.3 million. This positions him as a major shareholder. “The involvement of large, recognizable investors can significantly affect short-term sentiment,” noted Jamie Liu, a derivatives market expert. Meanwhile, dovish comments from Fed Chair Jerome Powell added optimism, temporarily supporting DOGE’s rally.

Derivatives and resistance levels

Market data shows long positions on DOGE ($185M) currently outpacing shorts ($171M), pointing to broader bullish sentiment. However, increased short activity near the $0.25 level has created a strong resistance zone, compelling cautious selling to mitigate liquidation risks.

Short clusters and price rejection

Data from Coinglass highlights over $81.4 million in short positions clustered at $0.25. This acted as a temporary wall that rejected DOGE at $0.249, reinforcing the broader sell-the-news trend that followed the Thumzup Doge miner announcement.

Technical outlook for Dogecoin

DOGE is currently trading close to the upper Bollinger Band at $0.2498, with the Relative Strength Index (RSI) at 54.71, indicating neutral conditions. Immediate support lies at $0.225, with deeper support at $0.201. The $0.25 level remains the first key resistance.

Potential breakout scenarios

If DOGE closes above $0.25, analysts expect upside targets between $0.27 and $0.29, echoing corrective moves seen earlier in August. Without a breakout, the token is likely to continue fluctuating between $0.22 and $0.25 in the near term.

Maxi Doge presale draws traders

As DOGE stalls, speculative token Maxi Doge (MAXIDOGE) is attracting attention with its 1000x leverage and no stop-loss structure. “Maxi Doge offers high-risk, high-reward opportunities for seasoned traders,” said Sarah Collins, crypto analyst. Its presale has raised more than $1.27 million out of a $1.53 million target, offering alternatives for traders seeking exposure beyond DOGE’s immediate resistance.

Long-term implications of Thumzup Doge miner acquisition

The Thumzup Doge miner acquisition reflects growing institutional involvement in cryptocurrency mining. Analysts will be monitoring whether Dogecoin can sustain momentum and break resistance, which could shape the market’s short- and medium-term trajectory.