Elon Musk's antics may steal the headlines, but there is another factor that could decide the fate of Dogecoin (CRYPTO:DOGE) in 2024: Fibonacci levels.

At least, that is what cryptocurrency analyst Ali Martinez is saying in a recent post.

According to the analyst, Dogecoin is now approaching the 78.6% Fibonacci retracement level of the 2021 rally. Reclaiming the $0.17 zone could be crucial for restoring some short-term optimism.

"Dogecoin (DOGE) is testing the 78.6% Fibonacci retracement of the 2021 rally at $0.17. A break above the $0.17-$0.23 resistance zone could open up potential gains toward the $0.30 level," Martinez said.

Dogecoin Price Chart Analysis: Can Bulls Step In?

After hitting lows of around $0.06 in late 2023, Dogecoin embarked on a recovery, eventually reaching highs of $0.19 in February 2024. However, this rally stalled, and prices slid back to the $0.10 area by April.

Despite this setback, Dogecoin managed to bounce back, rising to new highs of around $0.17 in mid-May. However, this move was met with strong resistance, and prices slid back to the $0.11 area by early June.

From there, Dogecoin experienced a period of consolidation, trading in a tight range between $0.10 and $0.12. This lack of volatility led to a decline in trading volume, which could be a concern for bulls.

As of June 21, Dogecoin was trading at $0.17, down slightly for the 24-hour period. The meme coin had seen a decrease of 6.2% over the past seven days. Dogecoin was trading at $0.06, the next major support level. A break below this level could lead to a deeper decline in prices.

Next Major Support Level

Dogecoin had been trading within a long-term ascending channel since early 2023. This channel had helped to guide prices higher, despite the presence of strong headwinds.

The upper trendline of the channel had offered resistance to prices on several occasions. However, prices had managed to break above this level on two occasions, in February and May.

The lower trendline of the channel had offered support to prices on several occasions. This trendline was now converging with the 100% Fibonacci retracement level of the 2021 rally.

A break below the lower trendline of the channel could lead to a deeper decline in prices. The next major support level was at $0.06, the low point reached during the 2023 crypto winter.

Despite the recent struggles, there were still some signs of strength in the Dogecoin chart. For example, prices had managed to close above the 50-day moving average on several occasions. This could be a sign that bulls were still in control.

Overall, Dogecoin was at a critical juncture. If bulls could manage to reclaim the $0.17 level and flip it into support, then the meme coin could continue its move higher toward the $0.23-0.30 range. However, if bears managed to break below the $0.10 level, then a deeper pullback could not be ruled out.