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After a U.S. Court declared sanctions against the Tornado Cash platform as unlawful, the TORN token surged 700%. However, it traded 96% below its all-time high of $408. At the time of writing, the token is hovering around $20.
In February 2021, TORN’s circulating supply was 500,000 tokens, valued at $204.07 million, with a price of $408 per token. By November 2024, the total supply increased to 8.9 million tokens, but its market cap is approximately $176.04 million. This matches its 2021 valuation despite the difference in token price.
Tornado Cash $TORN spiked +700% after US court rules sanctions placed against @TornadoCash were unlawful.
— Tokenomist (prev. TokenUnlocks) (@Tokenomist_ai) November 28, 2024
Despite the price hovering around ~$20 (-96% from its ATH at $408), emission on $TORN supply has indicated its unlocked supply to be similar in value after almost 4 years.… pic.twitter.com/ih8YscxK8o
Most of TORN’s supply went to governance (55%), followed by team and investor allocations (30%), anonymity mining (10%), and airdrops (5%). The price dilution aligns with the gradual unlocking of supply, reflecting the challenges of token inflation and market sentiment towards privacy protocols.
TORN Market Overview
According to CoinMarketCap data, TORN reached a short-term peak of $36.42, following its rally. However, this bullish momentum dipped drastically as the token plunged to a weekly low of $12.91 before finding stability above the $16 support zone. As of press time, TORN was trading at $16.91, reflecting a 10% dip in the past 24 hours.
Despite the sharp fluctuations, the token has a market cap of $88.91 million, placing it at 508th in global cryptocurrency rankings. Over the last 24 hours, the trading volume has declined by 56.58%, totaling $4.88 million. Despite recent volatility, the token’s volume-to-market cap ratio of 5.54% continues to demonstrate moderate liquidity in the market.
Technical Indicators Hint at Waning Bullish Sentiment
The technical indicators hint that Tornado Cash may face friction in its bullish momentum. The 14-day RSI, currently at 83.42, remains above the overbought threshold of 70 but is trending downward. This indicates that TORN is likely to experience overbought conditions, setting the stage for a possible short-t
Similarly, the Directional Movement Index (DMI) reflects a weakening uptrend. While the +DI line (75.39) remains above the -DI line (0.72), signaling bullish dominance, the downward trajectory of the +DI line suggests that buying pressure is easing. However, the ADX value at 57.33, indicates a strong overall trend. If the ADX declines, it would reduce momentum and increase price consolidation or retracement.
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