Vitalik Buterin's Donation Revives Interest and Optimism in Tornado Cash, TORN Price Hints a Bullish Setup

Tornado Cash has been embroiled in a legal battle. Developers Alexey Pertsev and Roman Storm face allegations of money laundering.

Legal battles often dampen the market’s bullish sentiment, and the issues surrounding Tornado Cash were no exception. The regulatory heat had left privacy proponents within the crypto community worried about the future of privacy-centric technologies.

Buterin Donates To Tornado Cash’s Cause

Vitalik Buterin recently donated about 30 ETH (around $111,000) to a legal defense fund for Tornado Cash developers Pertsev and Storm. The donation, made via Juicebox, an open-source crypto crowdfunding platform, helped the fund reach nearly 597 ETH (around $2.23 million).

The fund, titled “Free Alexey & Roman,” aims to provide legal assistance to the developers who have faced extensive legal challenges for their work with Tornado Cash.

Buterin’s support had a noticeable impact on the sentiment around Tornado Cash. Following the donation, the price of TORN, the native token of Tornado Cash, saw a significant uptick. This price movement can be attributed to several factors.

Firstly, Buterin’s public support increases Tornado Cash’s visibility and credibility, potentially inviting more support for the cause. This increased attention can attract more users and developers to the platform, reinforcing its value within the crypto ecosystem.

Secondly, Buterin’s involvement boosts confidence among Tornado Cash’s existing user base. The Ethereum founder’s support highlights the importance of privacy solutions and the need 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 Entice Buyers

After Buterin’s donation, the TORN price briefly rallied over 18% to reach $3.2 on May 30 before facing some profit booking.

However, the TORN price quickly corrected, with the Tornado Cash token close to erasing its WTD gains.

But the token has a familiar friend, a bullish setup called the ‘bull flag pattern’ that TORN has formed. A bull flag pattern is formed when a crypto token’s price experiences a near-vertical rise, creating the flag pole. This pattern usually emerges in assets that are in a strong uptrend.

After 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. Usually, a breakout from this consolidation phase triggers another significant uptrend.

The pattern completes when the price breaks out from the flag area, essentially 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.

As per the rules of technical analysis, if the token confirms the bullish technical pattern, TORN price may 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.