Shiba Inu has seen its exchange activity slow significantly as investors appear to be taking caution again amid the broader crypto market downturn.
While the market has suddenly flipped negative, data provided by crypto analytics platform CryptoQuant shows a decline in the SHIB exchange netflow over the last day.
Shiba Inu enters bear zone
The data shows that the Shiba Inu exchange netflow has declined modestly by about 3% over the last day, sitting at 38,631,500,000 SHIB as of the time of writing.
This suggests a rise in selling pressure as the current exchange netflow metric shows that traders have dumped more SHIB tokens on exchanges to sell than they have bought over the period.
Notably, the metric provides a bearish signal for SHIB as such declines in exchange netflow often signal weakening investor interest, possibly influenced by the broader crypto market trend.
Shiba Inu still up for a positive July close
It is important to note that the decline in the SHIB netflow has come when Shiba Inu is trading in the red, alongside other major crypto assets including Bitcoin and XRP.
Amid the sudden shift in investors' sentiment, Shiba Inu has dropped from a high of $0.000004234 to a low of $0.000004083 within just 24 hours.
The negative SHIB exchange netflow coinciding with a sharp price drop provides a bearish outlook for SHIB, positioning the asset for further downside movement in the short term.
While it remains uncertain whether momentum will be restored in the near term, it appears that the strong optimism for a notable July return is gradually fading.
Dan Burgin
U.Today Editorial Team
