Tornado Cash price formed a God Candle pattern after a U.S. court overturned sanctions against the wildly popular mixer. The TORN token surged by over 150%, reaching its highest swing since November last year. So, is it a good buy ahead of a big token unlock?
The primary catalyst for the Tornado Cash surge was a Texas court decision to overturn sanctions by the Office of Foreign Assets Control (OFAC) on the network. The agency had imposed those sanctions, claiming it facilitated money laundering by foreign agents, including the Lazarus Group.
Therefore, the end of this case is a big relief to other privacy-focused coins, many of which were delisted by prominent exchanges. Some of those tokens are Monero and Dash. It was also a big victory for the crypto industry, which had been battling numerous lawsuits during Gary Gensler’s tenure.
The end of this lawsuit may also lead to a re-listing of the Tornado Cash token. Most of its trading is happening in MEXC, SushiSwap, and Uniswap.
The next key catalyst that may lower the TORN price is the upcoming unlock scheduled on Saturday. This unlock will see the network unlock tokens worth $1.9 million, representing about 2.45% of the float.
Cryptocurrency prices often retreat ahead and after a token unlock because it leads to more dilution. On the positive side of Tornado Cash, these unlocks are about to end since it has a circulating supply of 5.25 million tokens against a total supply of 9.9 million coins. The last unlock will happen in March 2026.
Tornado Cash Price Forecast
The daily chart shows that the TORN price bottomed at $7.45 earlier this year. Before that, the coin formed a falling wedge pattern, a popular bullish reversal sign, explaining why it rebounded.
Tornado Cash price has soared above the 50-day and 100-day Exponential Moving Averages (EMA). That surge meant that bulls were in control for now. Also, the Relative Strength Index (RSI) and the Stochastic Oscillator have all pointed upwards.
Therefore, there is a likelihood that the Tornado Cash price will pull back to $10 as the God candle fades and as investors wait for the token unlock. Moving above the resistance at $26.8 will point to more gains, potentially to $40, its November highs.
READ MORE: Court Removes OFAC Sanctions on Tornado Cash In Landmark Ruling
