Market Alert: THORChain’s RUNE Token Under Severe Pressure
THORChain’s native token RUNE is facing unprecedented bearish pressure as technical analysis points to a potential 70% price crash amid controversy over North Korean transactions. The token has already witnessed a concerning 9.09% decline over the past week, with analysts warning of further downside ahead.
Technical Analysis Signals Major Downside Risk
Renowned crypto analyst Ali Martinez has identified a bearish flag pattern on RUNE’s 12-hour chart, traditionally a continuation pattern that suggests more losses ahead. The token has broken below the critical support level of $1.27, opening the door for a potential descent to $0.38 – representing a dramatic 70% decline from current levels.
North Korean Connection Sparks Community Crisis
The technical weakness comes amid serious governance concerns after revelations that North Korea’s notorious Lazarus Group allegedly used THORChain to launder over $605 million from the recent $1.5 billion Bybit exchange hack. This represents 54% of the stolen funds, raising serious regulatory and security concerns.
Internal Conflict Deepens Market Concerns
The situation has triggered internal strife within THORChain’s development team. A prominent developer known as Pluto(9r) resigned following a controversial vote regarding the platform’s response to North Korean transactions. The developer’s departure, along with failed attempts to halt Ethereum network operations on THORChain, has further eroded market confidence.
Market Impact and Price Analysis
Current market data paints a grim picture:
- Current price: $1.24
- 24-hour decline: 3.00%
- 30-day decline: 46.67%
- Key support level broken: $1.27
- Projected bottom: $0.38
Expert Perspectives and Future Outlook
While the immediate outlook appears bearish, not all analysts share the same pessimistic view. Crypto prediction platform Coincodex maintains an optimistic stance, forecasting a potential recovery to $1.40 within 30 days and $1.66 in six months. However, these projections may need revision given the recent governance crisis and security concerns.
Risk Factors and Market Implications
Investors should consider several critical factors:
- Regulatory scrutiny may increase due to the North Korean connection
- Community trust could continue to erode following the developer exodus
- Technical indicators suggest sustained bearish pressure
- Market sentiment remains heavily skewed to the downside
Source: NewsBTC