TORN price sinks 45% after U.S. Treasury sanctions Tornado Cash — rebound ahead?

XRP

Tornado Cash (TORN) has lost almost half its market valuation two days after being slapped with sanctions by the U.S. Treasury Department.

The department accused Tornado Cash, a crypto mixer platform, of laundering more than $7 billion in cryptocurrencies, including a stash of $455 million allegedly stolen by North Korea-based hackers.

Immediate reactions were followed by U.S.-based crypto companies, including Circle and Coinbase. In a controversial move, the popular crypto firms blocked the movements of their jointly-issued stablecoin USDC tied to Tornado Cash’s blacklisted smart contracts.

TORN price drops 45%

The news prompted traders to limit their exposure to TORN, Tornado Cash’s native token.

On the daily chart, TORN’s price has slipped by approximately 45% since the Justice Department’s notice about Tornado Cash, to reach $18.50 on Aug. 10. By contrast, the valuation of all the crypto assets had plunged merely 6% in the same timeframe.  

Interestingly, TORN’s selloff accompanied a spike in daily trading volumes, suggesting momentume.

TORN technicals suggest recovery

The downside move has pushed TORN price near a critical technical support.

Related: Anonymous user sends ETH from Tornado Cash to prominent figures following sanctions

TORN has been testing its $15-$18 range for a potential rebound due to its historical relevance as support. Notably, in January and June earlier this year, this level served as a springboard for TORN price to jump 275% and 100%, respectively.

Therefore, a potential rebound move from the range could have TORN tes $32.50 as its next upside target, which coincides with the 0.236 Fib line as shown above. In other words, a 75% recovery by September 2022

On the other hand, a breakdown below the support range sends TORN’s price to new record lows.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Articles You May Like

Ethereum Shifts Gears: Breaks Key Resistance, New All-Time Highs Next
When Spot Ethereum ETFs Go Live ‘Expect A Bloodbath’, Says Expert
Ethereum Deposits At 4-Month High: Whales Preparing For Selloff?
Did MicroStrategy Mess Up By Choosing Bitcoin Over Ethereum? Analyst Weighs In
ETH/BTC Bounces From A 7-Year Support Trend Line: Ethereum To $4,900?