With the first two SUI Exchange-Traded Funds (ETFs) making their debut in the US, some analysts have suggested that the cryptocurrency could be preparing for a massive recovery after recovering from a crucial support level.
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SUI’s institutional momentum is expanding
On Wednesday, Grayscale and Canary Capital debuted the first two spot SUI ETFs, which provide direct, regulated exposure to the cryptocurrency while allowing investors to take advantage of staking rewards.
Notably, Grayscale has expanded its offering of crypto-based products by converting its Grayscale SUI Trust into a spot ETF, which is now live on NYSE Arca under the GSUI ticker.
According to the announcementthe fund is designed to “provide investors with exposure to SUI and its staking activities through an ETP, and an easy way to gain exposure to a network designed for scalable, real-world applications and next-generation digital experiences.”
Krista Lynch, Senior Vice President, ETF Capital Markets, at Grayscale, confirmed that “the launch of GSUI on NYSE Arca marks a significant milestone in expanding the offering of exchange-traded products connected to the Sui ecosystem, including exposure to potential staking rewards.”
Meanwhile, Canary Islands capital launched the first US spot ETF for the cryptocurrency on Nasdaq under the SUIS ticker. The Canary Capital Staked SUI ETF “brings that exposure into a regulated, exchange-traded structure, giving investors access to SUI and its potential reward potential,” said Steven McClurg, CEO of Canary Capital.
“Canary continues to deliver on its strategy of translating emerging blockchain networks into accessible exchange-traded investment vehicles, and we are pleased to add SUIS to this category,” he continued.
The Sui Foundation highlighted that the latest launches have contributed to a series of institutional milestones in the ecosystem, including multiple Sui-linked investment products and strategic initiatives from companies such as 21Shares, Bitwise and Franklin Templeton.
SUI prepares for major price recovery?
During the debut of the spot ETFs, SUI’s price continued its sideways move below the $1.00 mark, trading between $0.93 and $0.98 throughout the day. Ali Martinez suggested that the cryptocurrency could be preparing for a move towards higher levels, noting that a key support level was recently retested.
As Martinex explained, SUI tested and recovered from a two-year rising support line following the early February market crash. This rising trendline has led to major rallies before.
According to the chart, the last two times this support line was reached, the cryptocurrency rose 365% and 850% respectively, with the latter sending the price towards the $5.35 all-time high (ATH) in the following months.
According to the analyst, if SUI holds the $0.80 area, “history suggests an uptrend could follow. And this time, the fundamentals are also lining up.” He pointed out that the growing institutional prominence and the alignment of the technical structure could provide a basis “for something much bigger.”
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This also applies to market observer Bitcoinsensus marked The macro structure of SUI, indicating a potential advance towards new highs. According to the post, the altcoin has “gone up in a highly technical structure” since launch, repeating a five-wave rise followed by a three-wave correction.
The chart shows that the price is likely at the end of the C-wave of its corrective move, suggesting that a new impulsive five-wave structure could develop in the coming months. “If this trend continues, we could see SUI reaching prices above $10 per coin,” the analyst concluded.
Featured image from Unsplash.com, chart from TradingView.com