Bitcoin donations send ‘Tornado Cash’ soaring, reality episode yet to be resolved

New Delhi, India (CoinChapter.com) — Tornado Cash is embroiled in a legal dispute. Developers Alexey Pertsev and Roman Storm face money laundering charges. Amid this turmoil, Vitalik Buterin has reignited interest and optimism in Tornado Cash.

Legal disputes tend to dampen bullish sentiment in the market, and Tornado Cash’s problems are no exception. The regulatory crackdown has privacy advocates worried about the future of privacy-centric technology in the crypto community.

Buterin donates to Tornado Cash cause

Vitalik Buterin recently donated about 30 ETH (about $111,000) to the legal defense fund of Tornado Cash developers Pertsev and Storm through the open-source crypto crowdfunding platform Juicebox. The donation helped the fund raise nearly 597 ETH (about $2.23 million).

The fund, called Free Alexey & Roman, is designed to provide legal assistance to developers facing major legal challenges as a result of their work with Tornado Cash.

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

First, Buterin’s public support increases Tornado Cash’s visibility and credibility, potentially attracting more people to support the cause. This enhanced attention could attract more users and developers to the platform, solidifying its value in the crypto ecosystem.

Secondly, Buterin’s involvement boosts confidence among Tornado Cash’s existing user base. The support of the Ethereum founder emphasizes the importance of privacy solutions and the need to protect developers working on such technologies.

Vitalik Buterin’s donation may have created a more favorable outlook for Tornado Cash.

TORN price bullish setup may attract buyers

Following Buterin’s donation, the TORN price briefly rose by 18% to $3.2 on May 30 before being affected by profit-taking.

However, the TORN price quickly corrected afterwards, with Tornado Cash’s token coming close to erasing its weekly gains.

However, the coin has a similar thread, a bullish setup known as a "bull flag pattern," TORN has formed. A bull flag pattern is formed when the price of a crypto token experiences a nearly vertical rise, forming a flagpole. This pattern is usually seen in assets that are rising strongly.

After a steep rise, the asset goes through a continuation phase, forming the flag of the pattern. Despite the initial strong rise, the price remains stable as buying remains. Usually, a breakout from this consolidation phase triggers another important rise.

The pattern reaches completion when price breaks out of the flag area, effectively resuming the previous upward trajectory. Traders project a price target for the breakout by adding the length of the flag pole to the breakout price level.

According to the rules of technical analysis, if the coin confirms this bullish technical pattern, the TORN price could rise above 80% to reach the theoretical price target of the pattern near $5. It appears that $5 is a bullish target for this major coin.