After a favorable court decision for Tornado Cash, the cryptocurrency token TORN experienced a remarkable increase of over 1000%. This led to a swift rise from $3.60 to a peak of $40 in just a short span of time.
Currently, the token is being exchanged at approximately $18, indicating a surge of 412% within the last 24 hours, despite a brief period of decline in the market.
Court removes penalties on Tornado Cash
A recent ruling by a U.S Federal Appeals Court favored Tornado Cash (TORN) by lifting the penalties imposed by the U.S Department of the Treasury. The court found that the Treasury had exceeded its power in penalizing the technology that anonymizes cryptocurrency transactions.
The court clarified that Tornado Cash’s smart contracts do not fall under the category of property, hence making them ineligible for sanctions according to the court’s decision.
In 2022, the Treasury accused Tornado Cash of facilitating illicit transactions worth over $7 billion, including $455 million stolen by North Korea’s Lazarus Group.
Implications of Whale Activity
Between the 8th and 11th of November, significant investors acquired 26,359 TORN tokens at an average price of $2.70 through the MEXC exchange, totaling an investment of $455k. As a result of the sudden surge in price, these investors have realized substantial profits.
With the current price, these investors have gained $384k in unrealized profits, representing a remarkable 540% return on investment.
The price spike signifies a strong market response to the court’s decision, reflecting renewed faith and interest in Tornado Cash and its token.
TORN Technical Assessment
Analysis of Tornado Cash’s 4-hour chart demonstrates strong bullish momentum, with the token trading at $18.69, retracing 55% from its peak of $40.
Indicators like the Alligator suggest an upward trend, with the lines aligning for upward movement. Additionally, the TSI and Awesome Oscillator confirm positive buying strength and rising momentum on the charts.
If the price remains above $20, a breakout towards $40 is probable. Nevertheless, a failure to maintain this level might result in a retreat to around $10.
Surge in Volume and Activity for Tornado Cash
In the last 24 hours, there has been a notable increase in transaction volume for Tornado Cash (TORN), reaching 101.51k TORN – a seven-day high.
It’s noteworthy that the price surged alongside this surge in volume, climbing from roughly $1.00 to $13.00, indicating active market engagement and strong buyer interest.
These elevated transaction volumes demonstrate increased involvement from major market players, propelling the recent price hike of the token.
The deviation from previous activity levels could be linked to either speculative trading or significant fundamental developments influencing demand.
Moreover, the surge in new addresses for Tornado Cash rose by +4180%, while active addresses increased by +979.31% – indicating heightened user engagement.
Simultaneously, zero-balance addresses surged by +2122.22%, suggesting potential wallet reorganization or reactivation of dormant accounts.