Dogecoin (CRYPTO: DOGE) could be approaching a significant volatility move as technical compression reaches a three-year extreme.

A Major Move Incoming?

Crypto chart analyst Ali Martinez noted on Monday that Dogecoin is experiencing its tightest Bollinger Band squeeze since September 2023.

"Such extreme compression suggests volatility is building, and a major price move could be approaching," Martinez said.

Bollinger Band squeezes indicate declining volatility but do not predict the direction of the eventual move. A sharp expansion could therefore occur either higher or lower.

Martinez had said on Saturday that Dogecoin whales appear to be positioning for upside, with large holders accumulating more than 430 million DOGE.

Meanwhile, the Tom DeMark Sequential flashed a buy signal on Dogecoin’s monthly chart, suggesting a potential trend reversal.

DOGE Speculation Returns To 2025 Levels

Derivatives data adds another layer to the potential volatility setup.

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. At that time, the meme coin traded at roughly three times its current price.

CoinGlass data shows Binance’s account-based long/short ratio at around 3.00, implying roughly three accounts are positioned long for every account positioned short.

That imbalance could amplify an upside move if DOGE breaks higher, but it also creates liquidation risk.

Dogecoin slipped to 11th place in the cryptocurrency rankings from eighth earlier, as its price plunged 70% over the past year.

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