Solana Price Tumbles as Bearish Reversal Setup Unfolds in August

Solana's price chart is flashing warning signs of a significant decline. A double top bearish reversal setup has formed on its weekly chart, indicating that the cryptocurrency may be poised for a substantial drop.

The setup features a neckline near $95, where Solana's price recently stalled after rebounding from lower levels. This suggests that the former support level has flipped into resistance, strengthening the bearish outlook.

Applying the pattern's measured move below the neckline produces a downside target near $36, representing an approximately 50% decline from current prices. Solana was trading near $72 as of Monday, August 3, which could put it at risk of hitting this target if the bearish setup continues to unfold.

The technical indicators are also pointing towards further declines. Solana's weekly relative strength index (RSI) is near 38, leaving room for further declines before reaching oversold territory. Additionally, its weekly exponential moving averages (EMAs) are in a bearish alignment, with the 20-week EMA near $82 and the other EMAs clustered between roughly $106 and $121.