Dogecoin surged this week, fueled by fresh optimism in the crypto market linked to a Trump-backed Dogecoin mining acquisition and supportive comments from Federal Reserve officials. The meme-inspired cryptocurrency saw renewed institutional interest, gaining 5% in a 24-hour period amid macro and regulatory tailwinds.

Trump-Affiliated Mining Deal Sparks Confidence

The rally gained momentum following news that Thumzup, a firm affiliated with former U.S. President Donald Trump, acquired Dogehash in a $50 million transaction. Executives touted the acquisition as the largest Dogecoin mining endeavor to date, signaling substantial investment in DOGE’s infrastructure and ecosystem.

Thumzup’s entrance into the mining sector underlines how politically connected capital is moving into crypto, especially into tokens like Dogecoin with long-standing community backing. The move is being interpreted by traders as validation of DOGE’s viability beyond its meme origins.

Wyoming Launches Government-Backed Stablecoin

Adding to market excitement, Wyoming introduced the Frontier Stable Token, becoming the first U.S. state to issue a government-supported digital currency. This action reinforces a growing shift in domestic policy toward crypto-friendly initiatives. As the first state-level stablecoin, it could pave the way for broader adoption of blockchain technology in government frameworks.

This stablecoin may also serve as a bridge between decentralized finance (DeFi) and regulated financial systems, potentially elevating cryptocurrency legitimacy in the eyes of institutional players.

Federal Reserve Signals a Softer Stance

Further boosting sentiment were recent remarks from Federal Reserve Vice Chair Michelle Bowman. She cautioned banks about the competitive disadvantages of delaying their engagement with digital assets, hinting at an evolving pro-crypto posture within the central bank. Her commentary has been widely interpreted as a green light for increased institutional inclusion of cryptocurrency in financial product offerings.

Moreover, SoFi Technologies’ adoption of Bitcoin’s Lightning Network for cross-border payments adds another layer of affirmation. SoFi’s move targets the $740 billion global remittance industry, signaling that traditional financial institutions are increasingly integrating crypto infrastructure.

DOGE Shows Healthy Price Activity

The recent breakout saw Dogecoin trade between $0.21 and $0.22, reflecting a 4–5% daily fluctuation. The token’s movement from $0.21 to $0.22 during the evening of August 20 secured a near-term resistance level at $0.22.

The highlight came during a one-hour window on August 21, when DOGE advanced by 1% amid trading volume surges surpassing 61.8 million. This spike underscores escalating interest from large-scale investors likely reallocating capital toward DOGE-related opportunities.

DOGE’s support zone remained intact between $0.21 and $0.22, backed by strong volume between 320 million and 380 million units during key tests. These volume-driven rebounds confirm solid investor support at these levels.

Technical Outlook Remains Bullish

Support: The $0.21–$0.22 price range has proven to be a reliable support base.
Resistance: DOGE faces resistance at $0.22, and buyers aim to challenge the $0.225 level for a confirmed breakout.
Volume: Notable trading volume, with peaks at 61.8 million and 378.6 million DOGE, indicates institutional involvement.
Pattern: The token displayed healthy consolidation followed by an upward thrust, supporting a continued bullish trend if the base holds.
Futures OI: Open interest in futures remains steady around $3 billion, suggesting confidence in leverage positions despite broader macroeconomic uncertainties.

Related: Bitcoin Maintains Price; Ethereum Hits High

Key Signals Traders Are Watching

• Whether DOGE can maintain momentum above the $0.22 threshold and approach $0.225 or even $0.23 in coming sessions.
• How broader markets interpret Wyoming’s stablecoin and the Fed’s increasingly adaptive posture toward digital assets.
• Whale movements, which have reportedly accumulated over 2 billion DOGE (worth $500 million) this week alone.
• The longer-term implications of Thumzup’s mining operation on hashpower distribution and potential network centralization risks.

Institutional-backed Dogecoin mining rigs following Thumzup’s $50M acquisition.