ThorChain’s native token, RUNE, has plunged lately, losing over 37% in the past week. The price drop follows the project’s controversial decision to introduce no liquidation, no expiry, and no interest loans, which many believe has placed the protocol at financial risk.
At its lowest point, RUNE touched $1.95, marking a critical support zone, while volatility remains extreme. The development team has now paused THORFi services and initiated a 90-day restructuring to address these financial challenges. Will this be a buy-the-dip opportunity or a sign of deeper trouble?
What you'll learn 👉
ThorChain Faces Financial Uncertainty
The sharp decline in RUNE’s price coincides with increasing concerns over the project’s financial stability.
According to CoinGecko, ThorChain has implemented a temporary halt on THORFi services, signaling urgent restructuring efforts. This decision follows backlash over its loan mechanics, which lack liquidations and interest, exposing the ecosystem to potential insolvency risks.
NEWS: @THORChain pauses THORFi services and enforces 90-day restructuring to address financial challenges.
— CoinGecko (@coingecko) January 24, 2025
The price of $RUNE has dropped by 32.0%, and it is currently trading at $2.10, following the news. pic.twitter.com/aUCJkSXjAk
Market observer, @TVRN20, criticized the developers for introducing these risky loan conditions, stating that while the chain remains operational, fixing the damage will take time. They warned that how the team handles the situation could determine whether ThorChain recovers or collapses.
RUNE Price Action and Market Sentiment
The market reaction to the news has been bearish. RUNE dropped by 32% following the announcement, to around $2.10 before slightly rebounding to $2.39 at press time. Technical analysts, including @CryptoJobs3, highlighted key support levels at $1.95, $1.40, and $1.00, warning that further declines could be possible.
$RUNE – price analysis: ⚠️
— 🧙 Crypto_Jobs🧙♂️ TA & FA 🎯 (@CryptoJobs3) January 24, 2025
Very bearish for some reason 📉 [Any infos / news?] ✍🏻
Weekly support perfectly touched at 1.950$ that's why bull reacted heavely here, but the volatility is extreme, and prices could keep moving lower!
Key supports: (weekly)
[1.950 – 2.00$] -… pic.twitter.com/cZ30WZsdCH
Despite the downtrend, some traders see an opportunity in the dip. @alphacryptosign noted that RUNE is approaching its 2022-2023 consolidation range, which could serve as a strong accumulation zone for long-term investors. They suggested that RUNE still has the potential for a 5x return from these levels if the project can recover.
Read also: Could ONDO Hit $3 Soon? ONDO Price Prediction
What’s Next for ThorChain?
The next 90 days will be crucial for ThorChain as the restructuring period unfolds. Investors and analysts are monitoring whether the team can implement a sustainable recovery plan while addressing concerns about insolvency.
Market volatility remains high, with RUNE potentially rebounding toward $2.80 if bullish sentiment returns. For now, caution remains the dominant sentiment, as traders assess whether ThorChain can stabilize its financial framework or if further downside risks persist.
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