TORN of Tornado Cash lost almost 50% its valuation after Treasury Department slapped sanctions on it. The department claimed the crypto mixer Tornado Cash laundered over $7B cryptocurrencies. The amount included $455M stash that North Korean hackers stole recently. Cryptocurrency companies like Coinbase and Circle reacted immediately. The widely used crypto firms stopped dealing in smart contracts of Tornado Cash connected to their jointly released stablecoin USDC.
Sellers started limiting their trading in TORN, the native token of Tornado Cash after this blacklisting news. The token price dropped by 45% on the daily market chart. On August 10, it was trading at $18.50. Compared to this drop, most other crypto assets dropped only 6% during the same period. Interestingly, some momentum was seen in the daily trading volume of TORN at the same time this selloff started.
The downward slide has seen TORN price reach the critical level of technical support. It has been testing in the range of $15 – $18 for a possible rebound from its historical value as support. This level helped TORN price jump by 275% in January and 100% in June this year.
The range’s potential rebound can see TORN reach $32.50 which will be its next higher target. It can coincide with 0.236 Fib point, making a recovery by 75% possible near September 2022. It means any breakdown that goes lower than the supporting range will send the price of TORN to a record low. The overall cryptocurrency industry trend will also affect how it fares in the coming months.