Shiba Inu’s exchange net inflow indicator is slowing, signalling that its short-term bullish trend has stalled.

On July 17, blockchain media outlet U.Today reported that Shiba Inu’s exchange activity has cooled sharply amid broader weakness across the cryptocurrency market, and investors appear to be turning cautious again.

Based on CryptoQuant data, Shiba Inu’s exchange net inflows fell about 3 percent over the past day. As of the time of writing, net inflows totalled 38,631,500,000 SHIB. Exchange net inflows show the difference between tokens flowing into exchanges and tokens leaving them over a given period.

The figure suggests more selling supply entered the market than buying supply. That means more investors moved SHIB onto exchanges to sell rather than buying it. The outlet said the drop in exchange net inflows signals weakness. It also reflects waning investor interest, it added.

Price action pointed the same way. Shiba Inu fell alongside major cryptocurrencies such as Bitcoin and XRP, dropping over 24 hours to $0.000004083 from $0.000004234. The outlet reported that deteriorating net inflows and a sharp price decline appeared at the same time, tilting Shiba Inu’s short-term outlook toward further losses.

Market sentiment is also cooling quickly. Shiba Inu had drawn expectations for improving returns in July, but investor sentiment has recently turned negative abruptly. The outlet said, "Strong optimism about a noticeable recovery in July returns is gradually fading."

This trend is not limited to Shiba Inu. With the broader cryptocurrency market turning weak recently, selling pressure has increased across major tokens, and Shiba Inu has also been affected. The outlet said it was unclear whether short-term momentum would recover in the near term.

As a result, the points to watch for Shiba Inu for now are whether exchange net inflows fall again and whether the price holds without further declines. For now, selling supply flowing into exchanges and subdued investor sentiment are being confirmed at the same time, and whether it can revive a rebound by the end of July remains a key variable, the outlet reported.