Solana’s double top near $206 signals fading strength, with price retesting $180 support that could decide the next major move.
Technicals show weakness as MACD turns bearish and RSI dips below 50, pointing to waning momentum after recent highs.
A breakdown below $180 may expose Solana to $170 and $158, two support zones that held firm during July’s price action.
Solana (SOL) is under pressure after failing twice at $206, forming a clear double top pattern. Price now hovers above $180 support, with traders eyeing the risk of a potential slide toward $160.
Double Top Structure at $206
Solana surged from mid-July lows near $160, breaking above $180 and climbing to $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 as noted by Ali Charts on X highlight its importance as a neckline level.
https://twitter.com/ali_charts/status/1957539498289402002
If this neckline fails, the structure projects a possible slide toward $158, a support zone tested in mid-July. The range between $158 and $206 has now defined Solana’s trading behavior for weeks, with volatility expanding during rallies and contractions following each reversal.
Indicators Signal Weakening Momentum
Source CryptoRank
The MACD has crossed bearish, with both the MACD and signal lines below zero. The histogram confirms negative momentum. RSI sits near 43, slipping under the neutral 50 mark, showing weakening buying strength. A lower high on RSI after peaking at 75 further reflects fading momentum.
Together, these signals point to reduced bullish energy and increasing downside risk if support at $180 breaks.
Market Cap Reflects Volatility
Solana’s market capitalization recently peaked above $110 billion on August 14 before retreating below $96 billion by August 18. This represents a sharp 15% swing in value over just a week.
The steep rise and equally sharp 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.
