Solana (SOL) has been generating significant attention in the cryptocurrency market, with analysts pointing to a potential price surge. Amberdata’s Greg Magadini, a director at the analytics firm, has set a bold target: Solana could hit $200 by the end of May 2025. While the $200 price point excites investors, the token must first overcome the crucial $160 resistance level to continue its upward momentum.

Magadini’s Bullish Call: The Power of Call Options

In a recent market report, Greg Magadini provided his forecast for Solana’s potential price movements. According to Magadini, the crypto market’s outlook for SOL is positive, driven by factors such as market dynamics and options trading strategies.

Magadini suggested that the best way to capitalize on a potential rise in SOL’s price was through buying call options. These are contracts that allow investors to bet on the price of an asset increasing by a specific date. In this case, Magadini recommended purchasing $200 call options with a target expiry of May 30th, 2025.

“The underlying spot market is going to dictate the market for now,” Magadini explained. He noted that call options provide a good strategy for traders looking to make a profit from anticipated price increases, as they give investors the right to buy Solana at $200.

However, it’s important to understand that options trading isn’t the sole driving force behind SOL’s movement. The broader spot market—where assets are traded in real-time—plays a major role in determining Solana’s price.

Breaking the $160 Resistance

While the $200 target is certainly ambitious, Solana faces a major challenge: the $160 resistance level. Currently, SOL has struggled to break through this price point, making it a key obstacle for any further price growth. For Solana to continue its rally toward $200, the $160 level must be cleared.

Resistance levels are prices at which an asset tends to face selling pressure, preventing it from moving higher. In this case, $160 has proven to be a strong barrier. Traders are closely monitoring this level, as breaking it could signal the start of a new price phase, leading to further gains.

Despite this, whale interest in Solana has increased. The Whale vs. Retail Delta indicator, which tracks the activity of large investors versus smaller retail traders, has turned green, signaling that whales are beginning to accumulate more SOL. This suggests that institutional investors may be bullish on Solana, but their positions haven’t yet been large enough to push the price past $160.

Volatility Drops: Cheaper Options for Investors

Magadini also highlighted another important factor: a decrease in volatility. Implied volatility, which reflects the market’s expectation of future price movements, has dropped in recent weeks. When volatility decreases, it can make options trading more attractive, as the contracts become cheaper to buy.

With the drop in volatility, Magadini believes that now may be a good time for traders to purchase $200 call options. “Volatility has come down a lot… Again, a good argument for owning the $200 calls 30-days out,” he said.

The cheaper price of call options offers an opportunity for traders to bet on a price increase without paying as much for the contract. This could attract more investors to the Solana market, potentially contributing to a price rise.

Solana’s Performance Against Ethereum

Another key factor in Solana’s potential for growth is its performance relative to Ethereum (ETH). Historically, Ethereum has been the second-largest cryptocurrency by market capitalization, but Solana has been outperforming ETH in recent months.

Since late 2023, the SOL/ETH ratio has steadily risen, meaning that Solana has been gaining ground on Ethereum. In fact, in April 2025, Solana’s price outpaced Ethereum by approximately 28%. If this trend continues, Solana could maintain its upward momentum, further fueling investor interest in the token.

Ethereum’s dominance has begun to face increased competition from networks like Solana, which is known for its faster transaction speeds and lower fees. As more developers and users flock to Solana for its efficiency, the price of SOL could continue to rise, especially if this trend continues.

Regulatory Environment and Market Sentiment

Regulatory clarity surrounding cryptocurrencies is another factor that could impact Solana’s price. In recent months, the U.S. Securities and Exchange Commission (SEC) has taken a more favorable stance toward crypto assets. If this trend continues, it could boost investor confidence in the market and benefit assets like Solana.

The broader market sentiment is also important. If the cryptocurrency market as a whole continues its bullish trend, Solana could see additional support as investors seek out promising assets to invest in.

The Outlook for Solana

The path to $200 is not without obstacles, particularly with the $160 resistance level looming. However, if Solana can overcome this hurdle, the potential for continued growth is strong. Factors such as decreased volatility, increased whale interest, and strong outperformance relative to Ethereum all contribute to the optimistic outlook for Solana in the short term.

Traders are likely to keep a close eye on the price movement in the coming weeks, especially as the end of May approaches. Whether or not SOL reaches the $200 target will depend on how these dynamics play out. However, the consensus among analysts is that Solana remains a cryptocurrency to watch, with the potential for a breakout to $200 by the end of May 2025.