Tornado Cash (TORN) has lost nearly half its market valuation two days after the US Treasury Department slapped it with sanctions.
The department accused cryptocurrency mixer platform Tornado Cash of laundering more than $7 billion in cryptocurrency, including a stash of $455 million allegedly stolen by North Korea-based hackers.
There was an immediate reaction by US-based crypto companies including Circle and Coinbase. In a controversial move, popular crypto firms blocked the movements of USDC, their federally issued stablecoin tied to Tornado Cash’s blacklisted smart contracts.
45% drop in the price of TORN
The news prompted traders to limit their exposure to Torna, the native token of Tornado Cash.
On the daily chart, the price of TORN is down nearly 45% since the Justice Department notice regarding Tornado Cash, reaching $18.50 on August 10th. In contrast, the valuation of all crypto assets had fallen only 6% in the same time frame.
Interestingly, the sell-off of TORN was accompanied by an uptick in daily trading volume, indicating momentum.
TORN offers technical recovery tips
The downside move pushed TORN price near an important technical support.
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TORN is testing its $15-$18 range for a possible rally due to its historical relevance as a support. Notably, earlier this year in January and June, this level served as a springboard for the price of TORN to jump 275% and 100%, respectively.
Therefore, the next upside target for a potential rally from the range could be $32.50 which coincides with the 0.236 Fibonacci line as shown above. In other words, 75% recovery by September 2022
On the other hand, a breakdown below the support range sends the price of TORN to new record lows.
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