The latest rebound in Ordinals indicates the potential formation of a bearish double top, which could signal the start of a significant retracement for the cryptocurrency. SATS has shown a strong recovery since hitting a one-month low of $0.000001540 during the Black Monday event on August 5.

The digital asset has recorded double-digit intraday gains on three occasions since the sharp dip. The most significant rally occurred on August 12, when SATS surged by 24.79%, lifting its price to a new monthly peak of $0.000003232.

SATS has defended the support around the $0.0000031 psychological mark, despite a 2% drop this morning.

Currently, SATS is trading at $0.000003148, representing an impressive 104% gain from the August 5 floor price.

However, the bullish push appears to be encountering resistance. The potential formation of a double-top pattern on the daily chart adds to this bearish outlook. The first top was formed when SATS surged to $0.000003418 on July 26, and the second top emerged amid the recent spike to $0.000003232.

The double top formation would be confirmed if the asset’s recent drop continues toward the neckline at the $0.00000154 support. To avoid further declines to this neckline, SATS must defend the $0.000001988 territory.

Meanwhile, the Stochastic RSI indicator shows that 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.

Additionally, the Ichimoku Cloud indicates that the conversion line (blue) is below the baseline (red), a bearish signal suggesting a potential downward trend.

Despite this, the recent upsurge has kept SATS above the cloud, confirming the prevalence of bullish momentum. Amid the ongoing drop, it is crucial for the bulls to hold above $0.000002880 to sustain the bullish trend.

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