- TORN price has dropped by 55% from its recent high in the past few hours.
- RSI was wandering in the overbought zone.
- The 24-hour trading volume has declined by 57%.
The Tornado Cash (TORN) price has displayed an unpredictable gain in the past two days. It recorded a bullish spike of 1000% in less than 48 hours and has touched the $39 mark.
However, the price has failed to hold the $39 mark and lost around 55% in a few hours. The Tornado Cash price has undergone an accumulation phase in a smaller time frame.
TORN crypto is in the limelight due to a court decision. The U.S. Fifth Circuit Court of Appeals ruled that the crypto mixer was subject to unlawful sanctions.
In addition to this ruling, the court protected blockchain privacy rights. This court decision witnessed a giant bullish move, and the price recorded a multi-high yesterday (Nov 27).
Tornado Cash Price Analysis About This Rally
When writing, the Tornado Cash was trading at $16.61. That has dropped by 13% over the past 24 hours. The market capitalization was $88.30 Million, and the 24-hour trading volume was $4.84 million.
After a massive bullish rally, profit booking has been observed. This has resulted in a 55% fall. However, the TORN price has been consolidating in a narrow range for the past few hours.
Buyers have held the TORN price over the $14 mark, indicating buyers’ interest. Suppose bulls hold this support level; it could generate a buying signal and attract buyers. Another bullish rally can be seen if the price departs from the consolidation zone and smashes the $20 mark.
On the other hand, if the TORN price loses the $14 mark, a selling opportunity can be seen. Massive selling pressure can be anticipated once the price loses the 20-day EMA due to the profit booking.
U.S. court invalidates Treasury’s sanctions
In July 2022, the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash. The token was sanctioned for aiding in laundering over $7 Billion in stolen money.
Tornado Cash is said to have been used to launder millions of dollars by the North Korean Lazarus Group. That is best known for its cybercrime.
However, the court determined that OFAC had overreached its legal jurisdiction in this case. Tornado Cash’s straightforward smart contract design was a vital component of the FUD.
There is no direct human control over these decentralized, self-executing computer programs. These are written in code lines and housed on the Ethereum blockchain.
According to the court, these contracts do not fall under the definition of “property” under the IEEPA. This is because property cannot be owned, managed, or confined.
TORN Price Analysis and Forecast Based on Recent Trends
Tornado Cash price experienced a remarkable 1000% surge in price. This surge was driven by a significant court ruling supporting blockchain privacy rights.
However, this rally was met with a sharp correction, resulting in a 55% decline. That led the TORN price to stabilize around the $16.61 mark.
The consolidation above the $14 support level suggests buyers are still interested. Moreover, a breakout above $20 could trigger another bullish phase. Suppose the price falls below the $14 mark and you lose the 20-day EMA; it may signal increased selling pressure and profit-taking.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
