🌪️ TORN’s Tempestuous Ascent: Will it End in a Crash? 🤑

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Dear fellow, it appears Tornado Cash (TORN) has been on a most…unsettling tear, skyrocketing by 40% in a mere 24 hours. One can only assume the news of its removal from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctions list sent the market into a tizzy. 🙄

Alas, as the price spike reaches for the stratosphere, one cannot help but wonder if the market is poised for a precipitous decline, a correction of sorts, to adjust to the newfound…freedom, if you will.

The Tornado’s Turbulent Ascent

Good heavens! Tornado Cash’s Relative Strength Index (RSI) has burst through the 70.0 threshold, indicating the crypto is, dare we say it, overbought. 🚨 This, dear reader, is often the harbinger of market saturation, where the altcoin’s bullish momentum has reached its zenith. Historically, once the RSI crosses this Rubicon, a price reversal is not far behind, suggesting a correction is lurking in the shadows… 🕷️

The overbought condition of TORN suggests the bullish sentiment driving this rally is, well, running out of steam. As the price consolidates or, heaven forfend, pulls back, the likelihood of a price drop increases, rendering the current price unsustainable in the short term. 📉

Furthermore, the macro momentum of Tornado Cash points to, ahem, further tribulations. The Chaikin Money Flow (CMF) indicator, that most reliable of barometers, is stuck in the bearish zone, signaling that selling pressure continues to outweigh buying pressure. 📊

And, if one were to rub salt in the wound, Tornado Cash has witnessed its highest outflows since its inception, further dampening the outlook. These outflows suggest investors are, in increasing numbers, cashing out, which, of course, weakens the token’s long-term recovery potential. 💸

Without significant inflows to counteract these outflows, TORN will struggle to maintain or extend its recent gains. The plot, as they say, thickens… 🤔

TORN’s Price: A Maelstrom of Volatility

Tornado Cash’s price, currently trading at $11.77, up a staggering 41% in the last 24 hours, has also noted an intra-day high increase of 88%. Over the past 12 days, TORN has gained a whopping 135%, marking a strong, if not bewildering, short-term performance. 🚀

However, with the token perched at these dizzying heights, it faces substantial downside risk, a precipice from which it may tumble. 🌪️

Given the overbought condition and bearish macro momentum, TORN is vulnerable to a fall through key support levels at $11.63 and $9.75. A breach of these levels could send the price plummeting to $7.36, extending the correction and potentially erasing recent gains. 📊

On the other hand, if Tornado Cash can sustain its bullish momentum and hold above $11.63, it may, just may, rebound. This could, in a surprising turn of events, pave the way for the price to aim for $15.81. 🤞

A successful rally to this level would, of course, invalidate the bearish thesis, solidifying the recent price gains and signaling the potential for further upside. But, dear reader, we wouldn’t count our chickens just yet… 🐓

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2025-03-22 16:08