NOIDA (CoinChapter.com)— Tornado Cash has been embroiled in a legal battle. Developers Alexey Pertsev and Roman Storm face allegations of money laundering. Amidst this turmoil, Vitalik Buterin revived interest and optimism in Tornado Cash.
Legal battles tend to dull the market’s bullish sentiment, and Tornado Cash’s issues were no different. The regulatory crackdown left privacy supporters with concerns within the crypto community about the future of privacy-centric technologies.
Buterin’s Donates For Tornado Cash’s Cause
Vitalik Buterin recently donated approximately 30 ETH (around $111,000) to a legal defense fund for Tornado Cash developers Pertsev and Storm. This donation, made via Juicebox, an open-source crypto crowdfunding platform, helped the fund reach nearly 597 ETH (about $2.23 million).
The fund, named “Free Alexey & Roman,” aims to provide legal assistance to developers who have faced significant legal challenges due to their work with Tornado Cash.
Buterin’s support has had a palpable impact on the sentiment around Tornado Cash. Following the donation, the price of TORN, Tornado Cash’s native token, saw a noticeable uptick. This price movement can be attributed to several factors.
Firstly, Buterin’s public endorsement increases Tornado Cash’s visibility and credibility, potentially inviting more support for the cause. This heightened attention can attract more users and developers to the platform, reinforcing its value in the crypto ecosystem.
Secondly, Buterin’s involvement boosts confidence among Tornado Cash’s existing user base. The Ethereum founder’s support underscores the importance of privacy solutions and the necessity to protect developers working on such technologies.
Vitalik Buterin’s donation might have ended up creating a more favorable outlook for Tornado Cash.
TORN Price Bullish Setup Could Attract Buyers
Following Buterin’s donation, the TORN price briefly rallied over 18% to reach $3.2 on May 30 before succumbing to profit booking.
However, TORN price corrected rapidly afterward, with the Tornado Cash token close to erasing its WTD gains.
Yet, the token has a similar lining, a bullish setup called the ‘bull flag pattern‘ that TORN has formed. A bull flag pattern forms when a crypto token’s price experiences a near-vertical rise, creating the flag pole. This pattern commonly emerges in assets that are in a strong uptrend.
Following the steep ascent, the asset undergoes a period of consolidation, which creates the flag of the pattern. Despite the initial strong rally, the price holds steady as buying pressure persists. Typically, a breakout from this consolidation phase triggers another significant uptrend.
The pattern reaches completion when the price breaks out from the flag area, effectively resuming the prior upward trajectory. Traders project the breakout’s price target by adding the length of the flag pole to the breakout price level.
According to the rules of technical analysis, if the token confirms the bullish technical pattern, TORN price might rally over 80% to reach the pattern’s theoretical price target near $5. It seems $5 is the target for the prime altcoin’s bulls.
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