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The latest Ordinals rebound leads to the potential formation of a bearish double top, a pattern that could signal the start of a steep retracement journey for the cryptocurrency. 
SATS (<a href="https://crypto.news/price/orindals/" target="_blank" rel="noreferrer noopener">SATS</a>) has staged an impressive recovery since hitting a one-month low of $0.000001540 during the <a href="https://crypto.news/crypto-black-monday-why-is-crypto-crashing-right-now/" target="_blank" rel="noreferrer noopener">Black Monday</a> event on Aug. 5.&nbsp; 
The digital asset has recorded double-digit intraday gains on three occasions since the sharp dip. The most significant rally occurred on Aug. 12, when SATS surged by 24.79%, lifting its price to a new monthly peak of $0.000003232.&nbsp; 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="1854" height="873" src="https://crypto.news/app/uploads/2024/08/Sats-Double-Top_090734.png" alt="SATS recovers 104%, but double top formation threatens steep correction - 18" class="wp-image-14291166">
 <figcaption class="wp-element-caption">
 SATS double-top indicator – Aug. 13 | Source: <a href="https://www.tradingview.com/" target="_blank" rel="">Trading View</a>
 </figcaption>
</figure> 
Despite a 2% drop this morning, SATS has defended the support around the $0.0000031 psychological mark. The asset is trading at $0.000003148 at the time of writing, representing an impressive 104% gain from the Aug. 5 floor price. 
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However, the bullish push appears to be running into resistance. The potential formation of a double-top pattern on the daily chart adds to this bearish outlook. Ordinals formed the first top when it <a href="https://crypto.news/sats-aave-monero-and-ordi-soar-over-10-after-bitcoin-jumps-4/" target="_blank" rel="noreferrer noopener">surged</a> to $0.000003418 on July 26. The second top formed amid the recent spike to $0.000003232. 
The double top formation would be confirmed if the asset’s recent drop persists toward the neckline at the $0.00000154 support. SATS would have to fervently defend the $0.000001988 territory to hedge against any drops to this neckline. 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="1162" height="681" src="https://crypto.news/app/uploads/2024/08/Sats-1D-Chart_090517.png" alt="SATS recovers 104%, but double top formation threatens steep correction - 19" class="wp-image-14291168">
 <figcaption class="wp-element-caption">
 SATS 1D chart – Aug. 13 | Source: <a href="https://crypto.news/price/orindals/" target="_blank" rel="noreferrer noopener">crypto.news</a>
 </figcaption>
</figure> 
Meanwhile, the Stochastic RSI indicator is currently in overbought territory. The %K line stands at 87.95, while the %D line is at 77.87. Both lines being above and near 80 typically indicate that the asset is overbought and could be due for a price correction.&nbsp; 
In addition, the Ichimoku Cloud indicates that the conversion line (blue) is below the baseline (red), a bearish signal that indicates the possibility of a downward trend.&nbsp; 
Despite this, the latest upsurge has kept <a href="https://crypto.news/sats-enjoys-63-surge-among-top-cryptocurrencies/" target="_blank" rel="noreferrer noopener">SATS</a> above the cloud, confirming the prevalence of bullish momentum. Amid the ongoing drop, the bulls need to hold above $0.000002880 to sustain the bullish trend. 
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SATS recovers 104%, but double top formation threatens steep correction

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