Analytics Firm's Anticipated Solana Price Surge: Predicted SOL Reach of $200 in May
Going Big on Solana: Insights on a Potential $200 Price Boost
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- Greg Magadini from Amberdata projects SOL could hit $200 by May-end.
- The whale community shows mixed sentiments, with $160 as a significant obstacle.
In a recent market analysis, crypto options analytics firm Amberdata's director of derivatives, Greg Magadini, suggests a possibility of Solana (SOL) surpassing $200 by the end of May.
Magadini states,
"The underlying market is key right now, so I still think buying these $200 5/30 calls is a strategic move to capture the price rise."
This investment strategy involves call options, which are bullish bets on SOL's future price targets.
Deciphering the $200 Price Breakthrough
Source: Amberdata
According to Magadini, market makers' long positions at the Gamma Level of $200 make it an essential level to monitor. However, dealers may struggle to halt SOL's likely surge towards this level due to the relatively small size of the option market compared to the spot market.
Moreover, Magadini draws attention to the substantial decrease in implied volatility compared to previous weeks, making it a cheaper and appealing option to buy calls targeting the end of May.
"Volatility has dropped considerably...once again, a sound argument for owning the $200 calls for the next 30 days."
Magadini also highlights the shifting trend from Ethereum (ETH) to Solana and the potential impact of pro-crypto regulatory decisions on SOL's outperformance.
Since the onset of the current cycle in late 2023, the SOL/ETH ratio has rallied and formed an ascending channel, suggesting that SOL has been outperforming ETH for several months. In April alone, SOL's price growth outpaced ETH by approximately 28%.
On the price chart, increased whale interest is evident, indicated by the Whale vs. Retail Delta indicator turning green. However, whales' positions have not escalated as much as the price edges closer to the $160 hurdle. To achieve the $200 target, clearing the $160 resistance is crucial.
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To attain the $200 target, Solana must break through substantial resistance levels like $160 and maintain consistent volume and price stability [1][5].
- According to director of derivatives at Amberdata, Greg Magadini, Solana (SOL) may reach $200 by the end of May.
- Magadini suggests buying $200 5/30 calls as a strategic move to capture the price rise, due to the potential bullish market and relatively low implied volatility.
- Market makers' long positions at the Gamma Level of $200 are an essential level to monitor, but their struggle to halt SOL's surge could be due to the smaller size of the option market compared to the spot market.
- Since the onset of the current cycle in late 2023, the SOL/ETH ratio has rallied, suggesting that SOL has been outperforming ETH for several months.
- In April, SOL's price growth outpaced ETH by approximately 28%, and increased whale interest, as indicated by the Whale vs. Retail Delta indicator, has been evident on the price chart.
- However, clearing the $160 resistance is crucial for achieving the $200 target, and other factors such as regulatory clarity, network growth, and broader market conditions can also impact SOL's price movements.
