Solana (SOL) is under pressure after forming a double top at $206. The price now hovers above $180 support, raising concerns among investors about a potential slide towards $160.
Double Top Structure at $206
Solana surged from mid-July lows near $160, breaking above $180 and reaching $206 by late July. After a pullback to $174 in early August, the token staged another recovery, matching the $206 peak on August 14. The second rejection confirmed a potential double top structure. Price has since moved lower, dropping more than 5% in the latest session to trade just above $181. Repeated tests of the $180 zone highlight its importance as a neckline level.
Indicators Signal Weakening Momentum
On the 4-hour chart, Solana trades near the lower boundary of its recent range following a rejection at $210 earlier this month. Volume has thinned, dropping from the spikes seen during prior breakouts and rejections. The MACD has crossed bearish, with both the MACD and signal lines below zero, indicating negative momentum. The RSI sits near 43, highlighting fading buying strength.
Market Cap Reflects Volatility
Solana’s market capitalization recently peaked above $110 billion on August 14 but retreated below $96 billion by August 18, representing a sharp 15% swing in value over just a week. This steep rise and drop mirror the price chart’s double top structure. By August 19, Solana recovered slightly near $98 billion, but the trend remains far from its earlier highs.
The current market situation for Solana requires close monitoring as a drop below the key support level could open the path to deeper price declines.
