Los Angeles Superior Court Marsha Revel also raised Lohan's bail to $200,000 from the previous $100,000.
Lohan's $200,000 bail was posted less than two hours after the hearing, a move that quashed a bench warrant issued for the actress' arrest by the judge.
According to a source familiar with her probation, the 23-year-old actress was at Sunday's MTV Movie Awards when her bracelet went off.
The bracelet is designed to test the skin for alcohol every half hour by sampling a person's perspiration.
ABC news legal analyst Dana Cole says that Lohan will have to face the music when she's back in court next month.
"If the judge feels that she tampered with her alcohol sensor device or if she in fact consumed alcohol, the judge could give her 30 days just to punish her," said Cole.
The "Mean Girls" star has been wearing the bracelet since May 24. Revel ordered Lohan to wear the monitor after missing a court hearing. The star claimed she lost her passport while she was in Paris attending the Cannes Film Festival, and was unable to return in time for her court date.
Lohan has denied reports that her alcohol monitoring bracelet went off. The actress made these statements on her Twitter account:
"My SCRAM wasn't set off - it's physically impossible considering I've nothing for it to go off. All of these false reports are absolutely wrong," Lohan wrote on her Twitter account.
"This is all because of a false accusation by tabloids and paparazzi and it's [expletive] disgusting. I've been more than I'm compliance and feeling great," she also Tweeted.
Cole says that the good news is, SCRAM bracelets are not always accurate.
"If you're sort of in an environment where there might be alcohol in the atmosphere, it can set off the device," explained Cole.
Lohan's attorney, Shawn Chapman Holley, issued a statement Tuesday, saying the device indicated the "presence of a small amount of alcohol" on Sunday night.
"Having just received the report, I am not in a position to speak to its accuracy or validity, however Ms. Lohan maintains that she has been in complete compliance with all of the terms of her probation and her bail," Chapman Holley said in a statement.
Lohan has been on probation since August 2007 after pleading guilty to misdemeanor drug charges and no contest to three driving charges. Since then, she has violated her probation several times for things like missing alcohol education classes.
Lohan is due back in court on July 6, when Revel will decide whether Lohan has violated her probation.
The Associated Press contributed to this report.
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