Solana price remains under $183.5, signaling weak momentum and heightened short-term pressure after its recent $210 high.
A bearish RSI divergence and failure to break July highs suggest a potential double-top formation between $206 and $210.
Coinbase’s new 5x leveraged SOL futures add significant volatility, which may drive sharper rallies or deeper declines.
Solana's price action has turned cautious following a recent downturn from its August 14 intraday high near $210. The asset has slipped below its 7-day exponential moving average, currently at $183.5, a sign that bullish momentum is weakening in the short term. Yesterday, Solana touched a low of $175 before rebounding slightly in today’s session. However, the price remains capped under short-term resistance levels.
Technical signals are growing increasingly bearish. A clear divergence between Solana’s price and the Relative Strength Index has emerged. While SOL briefly exceeded its July peak of $206 during last week’s rally, the RSI failed to confirm the move by printing a lower high. This mismatch raises concerns of a double-top formation between $206 and $210, which typically precedes further downside.
Coinbase’s leveraged futures could heighten price swings
Coinbase’s recent introduction of Solana perpetual futures contracts has introduced a new dimension of volatility to the market. These derivatives offer up to 5x leverage for traders in the United States, creating new opportunities but also increasing the risk of sharp price moves. Short positions using leverage could accelerate sell pressure if the price breaks below key support levels.
Until Solana regains and maintains above both the $183.5 range and the $190 resistance area the near-term prospects continue to be threatened. The breakdown below the $173170 area, where the 50-day simple moving average lands, can precipitate a bigger retreat. At lower levels, there is first the 100-day SMA at $166, which provides the support, and then the support at the time of writing is at $155. The breach to these lower levels would confirm the breakdown in a double top.
Although the present bounce indicates a certain interest in buying the market near the market bottoms, the overall structure is unstable. The rally may not last long without a remarkable reaction above the $190 mark. The margin trading environment that Coinbase futures contracts bring to the table may be a deciding factor on what direction the price of Solana takes next.
