Solana (SOL) is turning heads once again. After months of sideways trading, the altcoin has launched a powerful breakout—crushing resistance at $151 and setting its sights on the coveted $200 level. But while momentum looks promising, not everyone is convinced that Solana’s rise is sustainable, especially when it comes to challenging Ethereum’s dominance.
Solana’s Bullish Momentum: A $200 Target in Sight
After a massive 51% daily rally, Solana has broken through a critical price barrier, with bulls now eyeing $200 as the next big milestone. Trading volume surged alongside the breakout, confirming strong interest and buyer conviction.
With the Relative Strength Index (RSI) hovering around 65, Solana still has room to run before it enters overbought territory. Meanwhile, the 200-day Exponential Moving Average (EMA) at $161 stands as the next key short-term hurdle. A daily close above that EMA could turbocharge SOL’s momentum and potentially spark a wave of FOMO from sidelined traders.
However, caution remains. Analysts note that SOL must hold above the old resistance of $151—which now acts as support—to keep its bullish setup intact. If that level fails, a dip toward $140 is possible. For now, though, bulls have the upper hand, and the recent surge has cleared key technical roadblocks with surprising ease.
Sygnum Bank: Solana Still Trails Ethereum in Key Fundamentals
While Solana’s price action is undeniably exciting, Switzerland-based crypto bank Sygnum recently poured cold water on speculation that SOL could overtake Ethereum (ETH) anytime soon.
In a May 8 blog post, Sygnum emphasized that Solana’s revenue model leans too heavily on memecoin activity. Although Solana currently leads in Layer-1 fee generation, most of those fees flow directly to validators—not back into the ecosystem or the token’s value. This, Sygnum argues, makes its growth more speculative and less sustainable than Ethereum’s.
“Ethereum’s ecosystem offers unmatched security and long-term stability,” the post noted, adding that while Solana has room to grow—its market cap is just a third of Ethereum’s—it still lacks the structural advantages ETH provides. In terms of raw numbers, Ethereum’s revenues still outpace Solana’s by a factor of 2 to 2.5.
That said, Sygnum acknowledged that Solana’s more flexible tokenomics could work to its advantage, particularly in a fast-changing market. Combined with stronger recent sentiment and higher on-chain activity, Solana is capturing investor attention in ways that Ethereum currently isn’t.
Final Take: Bullish, But Not Without Caveats
Solana’s push toward $200 is generating buzz across the crypto community. With strong technicals and improving sentiment, the short-term case for continued upside is compelling. But investors would do well to stay grounded—key support levels must hold, and fundamental concerns about Solana’s revenue sustainability remain.
As of now, SOL is trading at $166.12, up 8.64% in the past 24 hours. Whether it breaks through to $200—or pulls back for a breather—will depend on how the market responds to both technical levels and deeper concerns around long-term fundamentals.
