Dogecoin's (DOGE +4.12%) token price is heading lower in Tuesday's trading. The meme coin's token price had fallen 2.7% over the previous 24 hours as of 12:45 p.m. ET. Meanwhile, Bitcoin and Ethereum were down 1.7% and 0.8%, respectively.
The crypto market is seeing sell-offs today as investors react to the latest twists and turns in the U.S.-China trade war saga. Dogecoin is now down roughly 19% over the last week of trading, making it the biggest loser among top 10 cryptocurrencies across the stretch.
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Dogecoin slips as trade war heats back up
Following recent moves by China to restrict the sale of rare earth minerals to non-allied countries, the U.S. has moved to implement new tariffs against China's goods and take other steps to reduce reliance on its geopolitical rival. These developments have prompted a wave of sell-offs across the crypto market, and Dogecoin has been an outsized participant in the pullback.
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What's next for Dogecoin?
As a meme coin, Dogecoin may face heightened sell-off risks if momentum in the broader crypto market continues to take a bearish turn. While the token has seen rising levels of adoption and integration into exchange-traded funds (ETFs), it is a heavily speculative investment backed by little in the way of fundamentals.
If relations between the U.S. and China continue to deteriorate, investors' appetite for potentially explosive, high-risk plays in the crypto market could deteriorate in tandem. Alternatively, Dogecoin could see a valuation rebound if the two countries manage to make meaningful progress on a trade deal that de-escalates tensions.
While it's impossible to know exactly where the cryptocurrency is heading in the near term, its token price will likely continue to see high levels of volatility.
