THORChain Token Signals Bearish Trend

THORChain’s token, RUNE, is showing signs of a downturn, forming a bearish flag pattern amid a surge in swap volume.

As of Friday, THORChain (RUNE) was priced at $1.3050, marking an 82% decline from its peak in November. It is nearing its lowest level since November 2023 and remains 90% below its all-time high.

Despite recent data indicating the network’s performance, which included one of its best trading weeks ever with a 640% increase in swap volume—totaling $3.3 billion—RUNE has been on a downward trajectory. It now ranks as the sixth-largest entity in the decentralized exchange sector.

Data from TokenTerminal reveals that weekly active addresses almost quintupled to 5,000, climbing from a low of 1,000 earlier this month. However, this uptick in activity is tied to the aftermath of the Bybit hack. Arkham reported that the Lazarus Group transmitted over $240 million worth of Ethereum through THORChain, laundering the stolen ETH by converting it to Bitcoin.

> ALERT: LAZARUS LAUNDERING THROUGH THORCHAIN – MINIMUM $240M SO FAR
> Over $240M of ETH has been sent through Thorchain by Lazarus-tagged wallets on Arkham. These funds have mainly been swapped for native BTC.
> — Arkham (@arkham) February 27, 2025

Despite the increase in volume, THORChain is facing significant issues. In January, operations concerning Ethereum and Bitcoin lending were halted after liabilities exceeded $200 million. On Friday, Pluto, a core developer, resigned after a proposal to block transactions linked to North Korean hackers failed, which could lead to investigations by U.S. agencies like the FBI. The Bureau confirmed that the Lazarus Group was responsible for the Bybit breach.

RUNE Price at Risk of Major Breakdown

Analyzing the weekly chart, one can see that THORChain’s price has been in a steep decline since reaching $7.50 in December, following the development of a head and shoulders pattern—a known bearish reversal indicator. RUNE has fallen below both the 50-week and 25-week Exponential Moving Averages, as well as the critical support level at $2.5560, its lowest swing since September 2023.

Currently, RUNE is forming a bearish flag pattern, a common signal of continuation for bearish trends. A significant breakdown is likely if the price drops below the vital support level of $0.7790, which is its lowest point in 2023.

Conclusion

The overall sentiment surrounding THORChain’s token remains risky as it contends with a slew of challenges and fluctuating market conditions.