SUI Slips Below $1 Despite Grayscale’s Spot ETF Filing With Coinbase as Custodian

SUI remains under pressure below the $1 mark even as institutional momentum builds around a potential spot ETF conversion.

It is an advanced layer 1 blockchain that’s designed to provide fast transaction processing and enable developers to deploy scalable apps on the network. The ecosystem’s native token, SUI, can be used for staking, participating in governance, and covering fees associated with transactions.

Recently, Grayscale Investments submitted a filing to convert its Sui Trust into a spot ETF, naming Coinbase as the custodian and prime broker for the new fund, which may open up greater access for institutional investors to invest in the asset. At press time, the coin is trading at  $0.9764 with a increase of 1.27% over the past 24 hours.

Chart Signals Ongoing Downtrend

On the chart from TradingView, the asset trades at approximately $0.96. It has recently rejected trading above the psychological resistance level of approximately $1.00, and, as a result, is trading well below the 200-day moving average of approximately $1.40. There is heavier resistance at about $1.52.

The overall trend for the asset continues to print lower highs and lower lows; therefore, bears are still in control of the price action. In addition, the OBV remains in decline and suggests that the recent price rebounds have not been supported by sufficient accumulation.

Also Read: Price Alert: $143 Million Short Liquidations Loom Near $1.74

Market Reaction After ETF Filing

A recent post on X from Sui Insiders says Grayscale Investments is bringing it closer to Wall Street by amending its S-1 filing to convert Sui Trust into a spot ETF (GSUI).

Additionally, traders believe that naming Coinbase as the prime broker and custodian of the proposed fund is an important institutional milestone for the Ecosystem.

In conclusion, the creation of an ETF is a positive development that increases demand for it from institutional investors, but for the momentum of the price to change in favor of the bulls, the coin must reclaim the $1.00 psychological level and break above key resistance levels of approximately $1.40 and $1.52.

Also Read: Breakout Signals Potential 15% Rally to $1.16