Dogecoin Price Volatility on the Rise as Bollinger Band Squeeze Hits Three-Year Extreme
Dogecoin (CRYPTO: DOGE) is experiencing its tightest Bollinger Band squeeze in three years, according to crypto chart analyst Ali Martinez. This compression indicates declining volatility, but a sharp expansion could occur either higher or lower.
A Bollinger Band squeeze occurs when the moving average converges with the upper and lower bands, suggesting that a significant price move is imminent.
Martinez noted that Dogecoin whales are positioning for upside, with large holders accumulating over 430 million DOGE. This accumulation could lead to increased buying pressure if Dogecoin breaks higher.
The Tom DeMark Sequential flashed a buy signal on Dogecoin's monthly chart, suggesting a potential trend reversal. Derivatives data also shows that Dogecoin futures open interest has climbed to nearly $1.19 billion, while speculative positioning measured in DOGE terms is approaching levels last seen in October 2025.