Solana’s $200 Target in May: Analytics Firm Doubles Down on SOL Surge

Solana (SOL) is gunning for a $200 price tag this May—at least according to one bold analytics firm. The prediction comes as the blockchain continues to eat Ethereum’s lunch in speed and fees—though skeptics whisper ’crypto price targets are just horoscopes for finance bros.’

Why the optimism? SOL’s recent rally defied the broader market slump, fueled by meme coin mania and institutional interest. If the momentum holds, $200 could be next—but don’t mortgage your NFT portfolio just yet.

Key drivers: Network upgrades, spot ETF whispers, and that sweet, sweet ’Ethereum killer’ narrative. Whether SOL hits the target or crashes back to reality, one thing’s certain: traders will over-leverage either way.

SOL — Decoding $200 price target

Source: Amberdata

According to Magadini, dealers (market makers) were going long at the Gamma Level of $200, making it a key level to watch.

Still, dealers couldn’t cap SOL’s likely rally from hitting the level because the asset’s option market was still relatively small compared to the spot market. 

Additionally, he noted that implied volatility (expected future price swings) dropped significantly compared to the past weeks. This meant buying call options now, targeting the end of May, was cheaper and a ‘decent’ play, reiterated Magadini. 

“Volatility has come down a lot…Again, a good argument for owning the $200 calls 30-days out.”

He further pointed out that the rotation trend from ETH to SOL and pro-crypto SEC could be tailwinds for SOL’s outperformance. AMBCrypto confirmed the SOL/ETH outlook.

From the beginning of this cycle in late 2023, the SOL/ETH ratio has rallied and formed an ascending channel. This meant SOL outperformed ETH over the past few months.

Source: SOL/ETH, TradingView

In April alone, SOL’s price performance outpaced ETH by about 28%. The trend could remain intact for the next few months or weeks unless the channel is broken. 

On the price chart, SOL saw increased whale interest, as illustrated by the Whale vs. Retail Delta indicator turning green.

However, whale positions haven’t increased as much as the price approached the $160 hurdle. For bulls to target $200, the $160 resistance must be cleared.  

Source: Hyblock