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Shiba Inu may be in a difficult market position because its recent rally seems to have stalled. Since SHIB's price fell more than 20% after hitting new highs, it may find it difficult to sustain its upward trajectory. Due to this recent drop, SHIB is now in a phase of consolidation, raising questions about where it will go from here.

Shiba Inu's chart displays a candlestick pattern that looks like a spinning bottom from a technical perspective, which is usually an indication of market hesitancy. In addition to suggesting a lack of strong bullish sentiment at this point, this pattern frequently indicates a reversal or pause in the current trend. 

The spinning bottom pattern, which frequently suggests that the prior upward momentum may not be sustainable, emphasizes how buyers and sellers are achieving a temporary equilibrium. The moving averages emphasize this hazy outlook even more. The market may need to reconsider SHIB's chances for another rally, as the stock is currently trading closer to its support zones despite recent gains.

Price declines could be exacerbated by additional selling pressure if it falls below crucial levels like $0.00002100. This would make it more difficult for SHIB to regain bullish momentum in the near future and run the risk of reversing a large portion of recent gains. In the hopes that consolidation around current levels could serve as a foundation for future gains, Shiba Inu holders are currently keeping an eye out for indications of stabilization.

Overall sentiment is still cautious, though, as the meme coin is under additional pressure due to recent losses and the absence of a clear recovery path. The key level to keep an eye on right now is $0.00002350, as a break above it could reignite bullish sentiment. A decline below $0.00002100, on the other hand, might indicate additional downside risk.

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.