+8.49% for THORChain as exploit losses handled by protocol reserves

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THORChain jumps 8.49% amid recovery

Highlights

THORChain has accelerated recovery post-$10.7 million exploit with validators reviewing a major security-focused protocol upgrade.
Protocol reserves will fully cover exploit losses, protecting user funds and avoiding dilution of existing RUNE holders.
RUNE shows strong short-term bullish momentum with high probability of trading between $0.3540 and $0.4190 in the coming days.

Security upgrades restore trust after recent protocol exploit

THORChain has accelerated its recovery following the $10.7 million exploit on May 15, with validators now reviewing the v3.19.0 protocol upgrade that introduces key security patches, vault quarantine mechanisms, and the ADR028 framework. These measures directly address the exploit by allocating protocol-owned liquidity to cover losses while avoiding dilution for current RUNE holders, thereby restoring trust and supporting user and developer engagement in the network. According to THORChain, user funds remain unaffected and all losses will be absorbed through protocol reserves, mitigating further reputational and operational risks as the network resumes phased functionality.

Intraday bullish momentum as price holds above key supports

On the technical front, RUNE/USD trades above its MA-20 ($0.3852) and MA-50 ($0.3658) on the 1-hour chart, while remaining below the MA-200 ($0.4959) on the daily timeframe. The Ichimoku Kijun sits at $0.3855 and acts as the nearest support level. Indicators show a strong bullish bias in momentum: MACD signals Strong Buy and ADX confirms the prevailing trend’s strength, with RSI at 59.99 (Buy) and Stoch RSI highlighting continued buyer dominance. CCI reads Neutral, and the Awesome Oscillator is also Neutral, introducing some divergence but not contradicting the dominant upward momentum overall. Bull/Bear Power (BBP) underlines strong intraday buyer control.

Upside bias as trading range narrows amid breakout risk

In the very near term, the expected price range for RUNE/USD stands at $0.3540 to $0.4190, consistent with the asset’s recent volatility band relative to current levels. The prevailing scenario sees price consolidating within this corridor, with a high probability assigned to continued upside attempts. A bullish breakout is likely if price closes firmly above $0.4190, while a bearish scenario would require a breakdown below $0.3540, exposing RUNE to additional downside risk.

Viktoras Karapetjanc, expert at Traders Union, sees THORChain’s swift response to the recent exploit as a strong signal of resilience. The combination of rapid protocol upgrades and non-dilutive loss coverage sends a positive message to users and investors. Market sentiment is turning constructive with technical momentum favoring buyers above short-term supports. The analyst believes that resumed network functionality will reinforce trust and stimulate further demand for RUNE. "With fundamentals stabilizing and security prioritized, I expect RUNE to attempt a breakout above $0.4190 in the near term."

Earlier, analysts noted that THORChain faced persistent selling pressure despite brief rebounds, with technical indicators signaling downside risk. The current setup, featuring decisive improvements in both protocol security and intraday momentum, signals a shift in market dynamics—placing focus on whether RUNE can sustain its recovery by breaking above the $0.4190 resistance level.

Source of Data: RUNE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.