Dogecoin price closed out the Thursday trading session with a fantastic up day of 7%. The close of the day was also the high of the day, reflecting the bullish nature of the session.
Dogecoin price action closed above the daily Tenkan-Sen and Kijun-Sen on Thursday. The close above those two Ichimoku levels was the first time since November 8. This event is often a warning sign to short-sellers that the current corrective move has a high potential of terminating soon.
From a time cycle perspective, Dogecoin price has completed a cycle known in Gann Analysis as the ‘death cycle.’ The death cycle is a forty-nine to fifty-two-day cycle that Gann warned could reverse any trending move that had persistently been moving in one direction during that seven-week cycle.
Another time cycle that triggered a recent move for Dogecoin price was not a Gann cycle but an Ichimoku time cycle called a Kumo Twist. Kumo Twists are when the Cloud shifts from green to red or from red to green – when Future Senkou Span A crosses above/below Future Senkou Span B.
Kumo Twists are time cycles within the Ichimoku system that warn traders of a likely high or low developing on or around the date of the Kumo Twist, especially if an instrument has been trending strongly in one direction as it reaches the Kumo Twist date. Coincidentally, the significant Dogecoin price spike on December 13 was precisely on the date of a Kumo Twist.
From a time cycle perspective, Dogecoin is positioned perfectly for a new bullish expansion phase, despite its current bearish condition within the Ichimoku Kinko Hyo system. The projected target zone at $0.27 is the 161.8% Fibonacci expansion, which shares a value area with the strongest level in the Ichimoku Kinko Hyo system, Senkou Span B at $0.26.
The bullish outlook for Dogecoin price would be invalidated if Dogecoin created a new, lower low near the $0.145 value area. That would likely trigger a massive capitulation towards the $0.09 price level.
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