Deep Dive
1. Regulatory Pressure (Bearish Impact)
Overview:
Tornado Cash remains a regulatory lightning rod. The recent mistrial in the Ethereum MEV case (TradingView) and the 5-year prison sentence for Samourai Wallet’s co-founder (CoinMarketCap) highlight authorities’ aggressive stance on privacy tools. While Tornado Cash was delisted from U.S. sanctions in March 2025, co-founder Roman Storm’s ongoing trial (potential 45-year sentence) keeps uncertainty elevated.
What this means:
A conviction could deter developer activity and exchange listings, pressuring TORN’s liquidity. Conversely, favorable rulings might legitimize privacy protocols, but precedent leans bearish short-term.
2. Privacy Demand Surge (Bullish Impact)
Overview:
Tornado Cash processed a record $400M in transactions on 7 November 2025, driven by PulseX-linked addresses (CoinMarketCap). Despite sanctions, usage spiked 300% YTD, reflecting persistent demand for transactional anonymity.
What this means:
High volumes signal utility-driven demand, potentially offsetting regulatory risks. However, inflows tied to exploits (e.g., Garden Finance’s $6.65M laundering) risk attracting stricter oversight, creating a volatile equilibrium.
3. Technical Momentum (Mixed Impact)
Overview:
TORN’s price rose 16.47% in 24h (to $14.84) with RSI(7) at 68.65, nearing overbought territory. Resistance sits at $19.02 (23.6% Fibonacci), while MACD’s bullish crossover suggests near-term upside. However, 24h volume surged 199.87%, often preceding corrections.
What this means:
Break above $19 could target $24.58 (127.2% Fibonacci), but profit-taking at current levels may trigger pullbacks. Traders should watch the $13.01 support (78.6% Fib) for downside risk.
Conclusion
TORN’s price trajectory balances bullish on-chain utility against bearish regulatory headwinds. Short-term volatility is likely, but sustained privacy demand could offset legal fears. Will the Storm trial verdict become a make-or-break catalyst? Monitor courtroom developments and ETH’s staking trends, as Ethereum’s health directly impacts TORN’s ecosystem.