RUNE Faces Sharp Drop as THORFi Pause Sparks Market Concerns

THORChain's recent pause of its THORFi platform and the subsequent 32% drop in RUNE's price have sparked significant concern in the crypto market.

THORChain (RUNE) and THORFi (THOR) both faced price declines on March 8, 2023, amid a broader market downturn. RUNE experienced a sharp drop of 31.28% within 24 hours, while THORFi saw a more moderate decline of 2.39%.

RUNE's steep decline was accompanied by a surge in trading volume of 93.51%, indicating panic selling among investors. The price fell below key support levels, dropping from $2.75 to $2.12. If the $2.00 level fails to hold, further declines could lead to tests of $1.80 and $1.50.

On the other hand, if RUNE manages to reclaim $2.25 and $2.50, a recovery could be in sight. However, the bearish momentum remained strong, and the market's short-term outlook remained uncertain.

Meanwhile, THORFi's price remained within a narrow range, with less severe price action compared to RUNE. Currently priced at $0.1128, THORFi showed signs of low liquidity and weak investor interest, with a reported market cap of $0 and a trading volume of only $2.84K.

The tight price movement suggested a lack of strong buying interest. If the price fails to hold above $0.1100, it could test further downside levels, with $0.1050 and $0.1000 acting as critical support zones. Resistance levels are seen at $0.1155, $0.1200, and $0.1250. A breakout above these levels could signal a shift in sentiment, but the current trend remains bearish.

RUNE's rapid decline of 31.04% over 24 hours sparked concern among investors. The price hovered around $2.13, and with a market cap of $10.59K, the token's valuation took a hit. A significant rise in trading volume, up by 136.64%, pointed to heightened activity driven by fear and selling pressure.

The immediate support level for RUNE is $2.00, and if it fails to hold, a further decline toward $1.80 or even $1.50 is possible. On the flip side, reclaiming resistance at $2.25 could trigger a recovery toward $2.50 and beyond. However, the overall sentiment remains bearish, and traders should closely monitor the $2.00 support level.