Solana’s price is showing signs of trouble again, revisiting a chart formation that triggered a 21% drop earlier this year. The setup, known as a double top, has returned just above $74, but this time it looks less precise and weaker than before.
A double top happens when an asset hits a peak twice but fails to push higher, creating a resistance level. For Solana, those peaks emerged around July 15 and July 22, with a small dip in between acting as a key support line near $73. The worrying part is that buying volume is declining as the price tries to climb, which often signals that fewer investors are backing the rally. This pattern mirrors the one from spring when fading volume foreshadowed a sharp slide.
If Solana’s price falls below that $73 neckline, it could slide about 7% further, possibly testing the $67 range. Meanwhile, staying below $79 keeps the risk of more double tops alive, meaning the market isn’t out of the woods yet.
On-chain data adds nuance to this picture. The volume of Solana tokens moving on and off exchanges, a sign of selling pressure, is much lighter this time compared to the spring. Back then, nearly 8 million SOL left exchanges in mid-March, but now the outflow barely reaches 0.9 million. This smaller movement hints at weaker distribution pressure, which may explain the less sharp pattern forming now.
Still, another metric called HODL Waves, which looks at how long holders keep their tokens, tells a different story. Long-term holders those holding coins for one to two years stayed firm during the spring sell-off, but recent data shows they might be shifting gears. This change could mean that the conviction among core investors is waning, adding a layer of risk for the current price action.
Solana’s recent price moves are a reminder that technical patterns aren’t just lines on a chart; they reflect investor behavior and sentiment on the blockchain. Watching how these levels play out in the next few days will be key for anyone tracking SOL.
This content is informational and not financial advice.
