After the court ruled in favor of Tornado Cash, the price of TORN skyrocketed over 1000%. This led to the altcoin surging from $3.60 to a high of $40 in just a few hours.
At the time of writing, the token's trading price was around $18, rising 412% in the past 24 hours. Despite a brief depreciation on the chart, this remains the case.
Court lifts sanctions on Tornado Cash.
The U.S. federal appeals court recently ruled in favor of Tornado Cash (TORN), lifting the sanctions imposed by the U.S. Treasury. In fact, the court ruled that the Treasury overstepped its authority in approving this anonymous cryptocurrency trading technology.
The court stated that the smart contracts of Tornado Cash cannot be classified as property. Therefore, they cannot be sanctioned.
The U.S. Treasury targeted Tornado Cash as early as 2022, accusing it of facilitating over $7 billion in illegal transactions. In fact, this figure also includes $455 million stolen by North Korea's Lazarus Group.
What does the activity of whales suggest?
From November 8 to 11, savvy investors bought 26,359 TORN tokens through MEXC exchange at about $2.70 per token, totaling an investment of $455,000. The significant price increase generated a large amount of unrealized profit.
At the price at the time of writing, smart money positions have realized $384,000 in unrealized profits - a return on investment of 540%.
The price surge also highlights the market's strong reaction to the court ruling - indicating a renewed confidence and interest in Tornado Cash and its token.
TORN Technical Analysis
The 4-hour chart of Tornado Cash shows strong bullish momentum, with the altcoin trading at $18.69, retracting 55% from the high of $40.
Indicators such as the crocodile suggest an upward trend, as its lines seem to align with the momentum. Additionally, the TSI and Awesome Oscillator confirm the strength of buying pressure, presenting an upward momentum on the chart.
If the price maintains above $20, it could break through $40. However, failure to hold this level may lead to a pullback to around $10.
Tornado Cash trading volume and activity surge.
In the past 24 hours, the trading volume of Tornado Cash (TORN) also seems to have increased significantly. TORN's trading volume reached 101.51k, setting a new 7-day high.
It is worth noting that with the surge in trading volume, prices also spiked sharply, rising from about $1.00 to $13.00. This can be interpreted as increased market activity and strong buyer interest.
The increase in trading volume indicates growing engagement from large market participants, driving the recent price increase of the altcoin.
A significant divergence from previous activity levels may indicate speculative behavior or that there are major fundamental developments driving demand.
Finally, the number of new addresses for Tornado Cash surged by +4180%, and active addresses increased by +979.31% - a sign of increased user engagement.
Meanwhile, the number of zero-balance addresses increased by +2122.22%, indicating possible wallet restructuring or reactivation of dormant accounts.