Dogecoin (DOGE) continues to climb a month after plummeting near $0.10, and the meme-based crypto is now rebounding to higher levels in the second quarter of this year. The price of the meme-based cryptocurrency rose by nearly 6.5% to $0.15. Dogecoin's gains came after Elon Musk announced his $3-billion stake in Twitter on April 4.

Musk, the richest man in the world, and the most followed person on Twitter is considered an advocate of Dogecoin. The billionaire has named himself "Dogefather" last year and accepted Doge payments at his Tesla's online merchandise store.

According to a Cointelegraph report, Musk's investment could further push the crypto initiatives of the social platform. The company might even integrate Dogecoin.

So, @jack owns 2% of twitter, @elonmusk owns 9%!@jack loves BTC.@elonmusk loves $DOGE.

— Ran NeuNer (@cryptomanran) April 4, 202

DOGE price downside risks

There is still risk despite the bullish setup. Dogecoin's breakout move about the falling wedge's upper trendline comes with weaker volumes. This might suggest that traders aren't convinced about the rally.

Furthermore, the meme-based coin is trading below two critical support levels: the 20-week exponential moving average (20-week EMA; the green wave) around $0.15 and the 50-week EMA (the red wave) near $0.17.

A pullback from the said price ceilings could have Dogecoin return to the falling wedge's upper trendline to test it as a newfound support level. On the other hand, an extended decline risks invalidating the entire bullish reversal setup.