THORChain token is flashing a bearish signal, forming a bearish flag pattern that suggests further downside even as swap volume surges.
In the market on Friday, THORChain was trading at $1.3050, which is an 82% decrease from its peak in November. The current price is over 90 percent below its all-time high and is hovering close to its lowest level since November 2023.
The RUNE network has experienced a significant decline, although third-party data indicates that it recently recorded one of its finest weeks ever. The volume of swaps on the platform increased by 640% over the course of the last seven days, reaching $3.3 billion.
This growth places the platform as the sixth-largest player in the business of decentralized exchanges. As of this month, the number of weekly active addresses has nearly quadrupled to 5,000, which is an increase over the previous month’s low of 1,000.
On the other hand, the recent hacking of Bybit has been related to this substantial increase in activity. Arkham asserts that Lazarus Group transported over 240 million dollars’ worth of Ethereum across the network.
To conceal the fact that they had stolen Ethereum, the group converted it into Bitcoin. The surge in volume occurs at a time when THORChain is struggling to overcome significant obstacles.
After reaching a total of more than $200 million in liabilities, the company decided to halt lending for Ethereum and Bitcoin in January. As a result of the failure of a vote to restrict transactions linked to North Korean hackers, Pluto, a core developer in the network, announced his retirement on Friday.
Authorities in the United States, notably the Federal Bureau of Inquiry, might consider conducting an inquiry as a result of these transactions. The FBI has confirmed that Lazarus Group was the organization responsible for the hacking of Bybit earlier this week.
RUNE price at risk of a big breakdown
The weekly chart demonstrates that the price of THORChain has been on a significant downward trend ever since it reached its highest point of $7.50 in December. The price decreased after a head and shoulders pattern, which is a well-known bearish reversal indicator, was formed.
RUNE has experienced a decline that is lower than the 50-week and 25-week Exponential Moving Averages, as well as the important support level at $2.5560. This level is the lowest swing that it has experienced since September 2023.
Currently, RUNE is producing a bearish flag pattern, which is a common confirmation of a bearish continuation. If the price drops below $0.7790, its lowest point in 2023, a further breakdown may occur.
