Coinpaper
February 4, 2026 9:16 AM UTC

Dogecoin Price Prediction: Analyst Warns of "Major" Volatility as Bears Dominate DOGE

At the time of writing, Dogecoin is trading at around $0.09009, down 2.66% over 24 hours. The drop came amid broader weakness in the cryptocurrency market, driven largely by escalating U.S.-Iran tensions. The meme coin, however, remained within a closely watched technical range for now. Analyst Flags Bollinger Band Squeeze Crypto analyst Ali Martinez issued a stark warning on X, pointing to a Bollinger Bands squeeze between $0.101 and $0.874. The squeeze signals a sharp compression in volatility. Historically, such compressions precede significant price movements. When market prices close outside the bands, traders interpret the break as the start of a new trend. Martinez flagged the pattern as a sign of an incoming ”major price move.” The direction of that move, however, remains unclear. The Bollinger Band strategy is commonly used to identify the beginning of new market trends following periods of consolidation. A tighter band means prices have traded in an unusually narrow range, and that pressure typically releases in a sharp breakout. Bears Take Control Across Multiple Indicators Beyond the Bollinger squeeze, multiple technical indicators have flipped bearish for DOGE. The Moving Average Convergence Divergence (MACD) indicator, which compares the 12- and 26-period exponential moving averages, flashed a sell signal on TradingView . The Bull Bear Power indicator also turned bearish, suggesting sellers are outweighing buyers in the current market cycle. The Relative Strength Index (RSI) offered little relief, hovering in the neutral zone. The reading neither confirms oversold conditions that might attract buyers nor signals overbought pressure that would push prices lower on its own. Adding to the bearish picture, Dogecoin's Long/Short ratio fell below 1.0, according to data from Coinglass. A reading below 1.0 means short positions now outnumber long positions, a clear sign that a larger portion of active traders are betting on further price declines.