Solana Price Prediction May 2025: Will SOL Break $175?

By: cryptosheadlines|2025/05/04 19:00:01
0
Share
copy
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com As we head into May 2025, the crypto market is looking strong, and Solana (SOL) is seemingly back in the game. After a rough start to the year, SOL has bounced back and is now trading at $150.19 at press time. With growing whale activity, institutional interest and good technicals, analysts are wondering if Solana can break through key resistance and hit new monthly highs.Whale Activity and On-Chain AccumulationSolana’s current price action is a reflection of the broader bullish sentiment that’s returned to the altcoin space. Last week of April, Solana price went up from $138 to over $150, driven by strong buying volume and on-chain activity. One of the best indicators of market conviction is the increasing number of whales buying and holding SOL. According to on-chain data from Santiment and Lookonchain, several wallets holding over 100,000 SOL have had huge inflows over the last 10 days, with total whale purchases over $80 million.Whale activity has been a leading indicator for Solana’s price movements. During previous bull runs, such as Q4 2021 and late 2023, accumulation by large holders preceded the breakouts. This is happening again. Current data shows whales are reducing exchange balances and moving funds into cold storage and DeFi staking protocols, a sign of long-term conviction.Solana Price Prediction May 2025: Will SOL Break $175?Technical Indicators Support Bullish MomentumAlong with whale accumulation, technicals also support the bullish case. RSI is below 70, currently at 61 on the daily chart. There’s still room for upside before a correction. MACD is above the signal line, bullish momentum is building. 50-day and 200-day moving averages are in a golden cross, a classic bullish signal for medium-term price appreciation.Fundamental Growth in the Solana EcosystemSolana also has fundamental growth. The network is still fast and scalable and developer activity is strong. Recent updates to Solana Saga mobile ecosystem, Solana Pay integrations and growth of decentralized applications (dApps) and NFTs on the network are driving user adoption and total value locked (TVL). According to DefiLlama, Solana’s TVL grew 11.8% in April, above $3.5 billion.Retail sentiment is also coming back. Google Trends shows 19% increase in searches for “Solana price prediction” in the last month. Derivatives data shows a spike in open interest on Solana perpetual futures across major exchanges like Binance and OKX. This increased leverage means traders are positioning for an upside breakout.Current Market Reaction: Solana Price Movement in Early May 2025As of May 2, 2025, Solana (SOL) is trading at $150.19, up 7% in the last week. This upmove is supported by moderate volume, buyers are back. Technicals are bullish: RSI is at 58.78 and rising, MACD is above the signal line, confirming the price action.Solana is consolidating below a key resistance at $157. If this level is broken with volume, SOL could go to $180 or even $205 in the month. Crowd sentiment data shows strong retail appetite for SOL, 1.81 on sentiment indices, while institutional sentiment is lagging, 0.88. This means retail traders are more bullish, institutions are cautious.Overall, Solana’s early May is looking good. With technicals aligned and sentiment positive, the market reaction so far supports the broader bullish case for May 2025.Solana Price Prediction May 2025: Will SOL Break $175?Factors Affecting Solana Price Prediction in May 2025Solana is one of the most watched cryptocurrencies, attracting both retail and institutional attention. As we head into May 2025, several factors will shape its price. From network upgrades and ecosystem growth to broader market sentiment and regulatory developments, understanding these drivers is key for anyone looking at Solana. Several factors that could impact Solana’s price this month.Bitcoin’s performance will impact capital flow into altcoins like SOL as it is currently hovering around $97,000, thus good for Solana.Global interest rate policies, inflation trends and risk appetite in traditional markets will impact investor sentiment towards crypto. Clear or positive regulatory guidance in key markets like US and EU will drive institutional entry.Continued dApps, DeFi integrations and user experience upgrades will increase demand for SOL. Outages or exploits will dampen sentiment, while improvements to uptime and speed will reinforce bullish trends.Three Price Scenarios for May 2025Based on all these metrics, analysts have outlined three price scenarios for Solana in May 2025.Solana Price Prediction May 2025: Will SOL Break $175?In the bull case, if Solana breaks above $155 with volume, it could go to $175 and potentially $190 by end of month. This is in line with past bullish patterns where similar setups have led to 20-30% moves in weeks. Analysts from CoinEdition and Changelly say if Bitcoin holds above $97,000, it will create the macro environment for SOL to accelerate.In the neutral scenario, Solana will consolidate between $140 and $155 if market momentum stalls or BTC fails to hold support. This will be healthy market digestion and allow for stronger accumulation zones before another breakout attempt. Sideways movement is common after a strong monthly close, especially in early Q2.If Solana can’t hold above $145 and Bitcoin is under pressure, the bearish scenario could play out and SOL could retrace to the $132-$126 support zone. But most indicators are showing limited downside unless macro or security issues kick in.Overall the May 2025 outlook for Solana is cautiously optimistic. Whale activity, technicals, ecosystem growth and retail interest are all pointing to a breakout. But as always in crypto, volatility is inescapable and risk management is key.GlossaryWhale: A wallet or individual holding large amounts of a particular cryptocurrency.Golden Cross: A bullish technical signal when a short-term moving average ‘crosses above a long-term moving average.MACD: A momentum indicator showing ‘the relationship between two moving averages.TVL (Total Value Locked): The total amount of assets locked in ‘DeFi protocols on a given blockchain.Perpetual Futures: Derivative contracts with no expiry, used for trading crypto price speculation.FAQsWhat is Solana’s current price? As at the time ‘of this publication, Solana (SOL) is trading at $150.19.Can Solana reach $175 in May 2025? If it breaks $155 with volume, Solana could ‘go to $175 or higher this month.What indicators are bullish for SOL? Whale accumulation, RSI’ and MACD trends and a golden cross on daily charts.What’s the main risk to Solana’s price? A drop in Bitcoin’s price or macro uncertainty could stop SOL from moving higher.SourcesBinanceCoineditionCoineditionLookonchainSource link

You may also like

Some Key News You Might Have Missed Over the Chinese New Year Holiday

On the day of commencement, should we go long or short?

Key Market Information Discrepancy on February 24th - A Must-Read! | Alpha Morning Report

1. Top News: Tariff Uncertainty Returns as Bitcoin Options Market Bets on Downside Risk 2. Token Unlock: $SOSO, $NIL, $MON

$1,500,000 Salary Job: How to Achieve with $500 AI?

The Essence of Agentification: Use algorithms to replicate your judgment framework, replacing labor costs with API costs.

Bitcoin On-Chain User Attrition at 30%, ETF Hemorrhage at $4.5 Billion: What's Next for the Next 3 Months?

The network appears to be still running, but participants are dropping off.

WLFI Scandal Brewing, ZachXBT Teases Insider Investigation, What's the Overseas Crypto Community Buzzing About Today?

What's Been Trending with Expats in the Last 24 Hours?

Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us

Original Title: Against Citrini7Original Author: John Loeber, ResearcherOriginal Translation: Ismay, BlockBeats


Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.


The following is the original content:


Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.


Never Underestimate "Institutional Inertia"


In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.


When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."


Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.


A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.


I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.


The Software Industry Has "Infinite Demand" for Labor


Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.


But everyone overlooks one thing: the current state of these software products is simply terrible.


I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.


From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.


Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.


I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.


This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.


Redemption of "Reindustrialization"


Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.


But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.


As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.


We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.


We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.


Towards Abundance


The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.


My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.


At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.


If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.


Source: Original Post Link


Popular coins

Latest Crypto News

Read more