Solana (SOL/USD) has formed a textbook double top pattern on its recent price action, with the cryptocurrency currently trading at $160.05 as it tests the critical neckline support that could determine the next major directional move.
The formation of two distinct peaks around the $166-$167 resistance zone, separated by a clear valley, has created a classic reversal pattern that bears are looking to exploit.
The double top structure reveals two failed attempts to break above the $166 resistance level, with each rejection creating equal highs that form the pattern’s characteristic twin peaks. This technical development suggests that buying interest has been exhausted at these elevated levels, potentially setting the stage for a more significant corrective move if the pattern completes with a neckline breakdown.
Next Solana Levels
The neckline support at approximately $160 represents the crucial level that validates or invalidates this bearish reversal pattern. Current Solana price action is hovering right around this support zone, with any decisive break below this level potentially triggering the completion of the double top formation and unleashing substantial selling pressure.
The technical implications of a confirmed double top breakdown are significant, as this pattern typically projects a measured move equal to the height of the formation. Measuring from the peaks around $166-$167 down to the neckline at $160 suggests a potential target in the $153-$154 area, representing a decline of approximately 7-8% from the neckline level.
This measured move target aligns with previous support zones that could attract institutional buying interest, making it a logical area for bears to take profits and for bulls to establish new positions.
Bearish Trend Momentum
The stochastic oscillator has begun to turn lower from elevated levels, reflecting the growing bearish momentum that has emerged following the second peak rejection. The oscillator’s movement away from overbought territory aligns with the double top pattern development and supports the bearish reversal scenario.
The MACD histogram displays clear signs of momentum deterioration, with the recent peaks failing to generate the same level of momentum as the initial rally phase. This bearish divergence pattern often accompanies double top formations and provides additional confirmation of the potential reversal.
Moving averages are beginning to flatten following their bullish slope, indicating that the underlying trend momentum may be shifting. Should the neckline support fail, these dynamic levels could transform from support to resistance, further accelerating any downside move.
A breakdown below the $160 neckline would not only complete the double top pattern but also violate the ascending trend line that has guided the recent uptrend. This confluence of technical failures would create a compelling bearish setup with clear targets and defined risk parameters.
Conversely, a successful defense of the neckline support could invalidate the Solana double top pattern and potentially trigger a relief rally back toward the $163-$164 resistance zone, where the pattern’s validity would be reassessed.