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The U.S. Securities and Exchange Commission (SEC) has postponed its ruling on the Canary SUI exchange-traded fund (ETF), intensifying bearish pressure on the SUI token.
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This delay extends uncertainty for investors seeking regulated exposure to SUI, contributing to a continued price decline amid already fragile market sentiment.
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According to COINOTAG, the SEC’s extended review period until July 24, 2025, reflects typical regulatory caution but has nonetheless dampened hopes for institutional inflows.
SEC delays decision on Canary SUI ETF, causing SUI token to slip amid bearish technical signals and uncertain market sentiment.
SEC’s Delay on Canary SUI ETF and Its Impact on SUI Token Price
The U.S. Securities and Exchange Commission’s recent announcement to postpone its decision on the Canary SUI ETF application has had a significant impact on the SUI token’s market performance. The SEC’s filing on June 4 extended the review timeline, pushing the decision date to July 24, 2025. This ETF, proposed by the Cboe BZX Exchange, aims to provide investors with regulated, direct exposure to the SUI token, a move that many market participants had anticipated as a catalyst for institutional adoption.
However, the delay has triggered renewed bearish sentiment, with SUI’s price falling 2.7% within 24 hours to $3.18. This decline extends a pullback that began after the token’s local peak of $4.02 on May 22, and positions SUI approximately 40% below its all-time high of $5.35 reached in January. While regulatory delays are not uncommon in ETF approvals, the timing exacerbates existing market uncertainty, particularly as investors weigh the prospects of institutional inflows against broader crypto market volatility.
Technical Analysis Highlights Bearish Momentum for SUI
From a technical standpoint, SUI is currently exhibiting signs of weakness. The token is trading below its critical short-term moving averages, including the 10-day and 20-day exponential moving averages (EMAs), which now serve as resistance levels. Additionally, the price struggles to remain above the lower Bollinger Band, indicating persistent downside volatility.
Momentum indicators further reinforce this bearish outlook. The Relative Strength Index (RSI) stands at 39, suggesting some residual buying interest but no oversold conditions that might signal an imminent reversal. Meanwhile, the Moving Average Convergence Divergence (MACD) has crossed below its signal line, confirming negative momentum. These technical signals imply that unless SUI can reclaim the $3.50 to $3.60 range—where multiple moving averages converge—downside risks remain elevated.
Market Sentiment and Potential Price Scenarios for SUI
Market sentiment surrounding SUI remains cautious as the token fluctuates between $3.10 and $3.71, with limited conviction from buyers. The SEC’s delay has intensified uncertainty, particularly regarding the timeline for regulated investment vehicles that could attract institutional capital. If SUI fails to hold the $3.10 support level, a drop toward $3.00 or even $2.90 is plausible, especially if broader market conditions remain weak.
Conversely, a decisive close above $3.70 could signal renewed buying strength and open the door for a potential rally toward the $4.00 mark. Such a move would require sustained momentum and improved market confidence, possibly influenced by positive regulatory developments or broader crypto market recovery.
Looking Ahead: Regulatory Environment and Institutional Interest
The SEC’s cautious approach to ETF approvals reflects ongoing regulatory scrutiny in the cryptocurrency sector. While delays can be frustrating for investors, they underscore the importance of compliance and investor protection in the evolving digital asset landscape. Institutional interest in SUI and similar tokens remains contingent on clear regulatory frameworks and the availability of secure, regulated investment products.
Market participants should monitor upcoming regulatory announcements closely, as these will likely shape the trajectory of SUI and related assets. In the meantime, traders and investors are advised to consider technical indicators and support levels carefully when making decisions in this volatile environment.
Conclusion
The SEC’s postponement of the Canary SUI ETF decision has intensified bearish pressure on the SUI token, reflecting broader regulatory caution and market uncertainty. Technical indicators suggest continued downside risk unless key resistance levels are reclaimed. As the crypto market navigates regulatory complexities, investors should remain vigilant and prioritize risk management while awaiting clearer signals on institutional adoption and regulatory clarity.
