Why is Grayscale betting on a massive surge for these 5 altcoins?
After months of retracement in the cryptocurrency market, is it time for a rebound? According to a recent report by Grayscale Research, the current timing is particularly favorable for positioning. Zach Pandl, Managing Director of Research, highlights that the firm’s altcoin basket has dropped by 59% from its peak, offering what is considered a “very compelling” entry point.
The institutional giant has thus highlighted five projects with solid fundamentals that are currently undervalued: Ethereum (ETH), Solana (SOL), Chainlink (LINK), Avalanche (AVAX), and Sui (SUI). Far from giving in to fear, Grayscale believes these tokens are trading at historically low levels, creating a golden opportunity ahead of a potential breakout in the coming years.
While Bitcoin often captures all the attention, this strong stance serves as a reminder that top tier altcoins retain massive upside potential. If institutional capital follows this thesis, these five cryptos could literally shatter their current resistances.
The case of Sui (SUI): The institutional surprise that could explode
Among behemoths like Ethereum or Solana, the presence of Sui (SUI) on this list is somewhat surprising. Yet, Grayscale is full of praise for this project. The firm touts its ultra fast, efficient, and reliable programming model, which are essential qualities to attract traditional finance and drive mass adoption.
Grayscale’s commitment to the Sui ecosystem goes well beyond a simple recommendation. The asset manager recently launched a GSUI staking ETF on the NYSE Arca and manages funds for native tokens like DeepBook and Walrus. This is one of its deepest bets outside the BTC/ETH duo.
Currently trading around $0.87, the SUI token has suffered a heavy drop of over 80% since its ATH of $5.36. This price level represents a real bargain for investors looking to position themselves before the next bullish rally.
Indeed, SUI is showing a 3 day bullish RSI divergence and is currently sitting on a weekly bullish order block. SUI therefore appears to be in an ideal accumulation zone. However, caution is advised, as losing the $0.75 mark could be catastrophic for SUI. This level will need to be closely monitored if SUI experiences a downturn in the coming months.
Is this the ideal time to accumulate before the next bull run?
Grayscale’s message is clear: the current market fear is masking rare investment opportunities. By labeling these five altcoins as a “buy zone”, the investment fund is sending a strong signal to institutional players and retail traders alike. The question is no longer whether the market will bounce back, but when.
Historically, accumulation phases during periods of doubt often precede the most violent market moves. If liquidity returns to risk assets, tokens like SOL, LINK, or AVAX could quickly skyrocket and wipe out the losses of recent months.
However, it is wise to take a step back. The 1 month chart for TOTAL3 has broken down below a major trendline. Furthermore, it is emerging from a double bearish RSI divergence. It is therefore crucial to be highly selective with altcoins, as a prolonged drop cannot be ruled out.
As the second quarter of 2026 begins, all eyes are on ETF inflows and regulatory developments. Will whales follow Grayscale’s recommendations? And above all, how high can the price of these altcoins go if a new bull run is confirmed in the coming years?
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