Dogecoin has displayed notable price action and trading momentum recently, outperforming even Bitcoin. This has resulted in Bollinger Bands on the DOGE/BTC chart tightening significantly, as highlighted by analyst Tony Severino.

Typically, narrow Bollinger Bands suggest low price volatility. This current squeeze on a monthly timeframe is the tightest since before Dogecoin’s 2021 rally, indicating potential for a strong future rally.

Dogecoin has not only broken out from a three-year channel pattern but has also reached its highest point, $0.176, in over six months. This suggests increased chances for a rally, potentially reaching a $2 target, although several resistance levels exist.

Currently trading at $0.1585, Dogecoin has undergone a 10% reversal, retesting the breakout channel.