Hello friends.
Every so often, the composite man (also known as the market manipulator), smiles upon an asset. The plan is to get liquidity and extract value from retail speculators who are eternally biased towards buying the peak of parabolic rallies and selling the bottom of parabolic dumps. A universal pattern in all markets is the establishment of an obvious support or resistance level only for it to be swept and then for a reversal to take place.
As we can see with TORN there was a key "support" zone that was broken and then almost instantly recovered. Since it came right back up, we know this was likely a spring pattern. This spring helps the market manipulators to buy a lot of these TORN tokens for a cheap value before they increase the price and sell them to unsuspecting retail traders for a profit.
On top of this idea, we can also see that there are some substantial narratives around TORN that could be used as an excuse by the market manipulators to increase the price.
The timeline goes like this:
Tornado cash gets banned in the USA -> TORN price tanks massively.
Coinbase and other affected parties form legal action against the US Treasury in an attempt to get Tornado cash's crypto mixer unbanned. -> Substantial rally for TORN
So really the big question is, what comes next in this story?
We think that there's a good chance the next thing is Tornado cash is the winner of this legal battle. If this is the case, it could give market makers a solid narrative to pump the TORN token back up, and prices would easily reach $20 or more. The pre-ban price was $30, so even that is a potential target.
It's also possible though that they could lose this, and the TORN token would need to have a small correction. However, it's not likely that even if they lose prices fall too much lower since they have already been hammered down massively. Basically, the risk and reward is greatly skewed to the upside, since if this plays out in Tornado cash's favor, the token will likely pump massively, and if it doesn't, there probably won't be much more than a 20% correction to the downside as a result. I got the 20% level from just looking at the current price and seeing how much lower it would have to go to reach the local low where the price bottomed right before the announcement of the lawsuit in the first place. The difference between a reward of 100% and a risk of 20% is substantial.
The other thing I will mention for Tornado cash that makes it an attractive purchase is that the market cap is only around $15 million meanwhile the daily volume has been able to reach levels of over $50 million during manipulation pumps and even during normal times stays above $10 million per day pretty easily. This kind of turnover shows us that there are a lot of traders willing to speculate on this token. The market makers know from experience that these traders who are providing $10 million in daily volume will happily buy the token up if it starts rising rapidly. All they need to do is have at least say $10 million in stablecoins, and start layering in massive bids and clearing out the asks from the order book. It doesn't cost much at all to move a low cap like this, and the returns can be quite huge for manipulators.
It's hard to understate how many eyeballs are eagerly watching to see if TORN token moves, and would gladly buy it as soon as a rally starts. There is $195 million in TVL (total value locked) into the Tornado cash protocol itself. This alone makes it crystal clear both big money and retail are interested in this coin.
I think you retail traders will love me for being bullish on a crypto for once.
Thanks for playing.
Every so often, the composite man (also known as the market manipulator), smiles upon an asset. The plan is to get liquidity and extract value from retail speculators who are eternally biased towards buying the peak of parabolic rallies and selling the bottom of parabolic dumps. A universal pattern in all markets is the establishment of an obvious support or resistance level only for it to be swept and then for a reversal to take place.
As we can see with TORN there was a key "support" zone that was broken and then almost instantly recovered. Since it came right back up, we know this was likely a spring pattern. This spring helps the market manipulators to buy a lot of these TORN tokens for a cheap value before they increase the price and sell them to unsuspecting retail traders for a profit.
On top of this idea, we can also see that there are some substantial narratives around TORN that could be used as an excuse by the market manipulators to increase the price.
The timeline goes like this:
Tornado cash gets banned in the USA -> TORN price tanks massively.
Coinbase and other affected parties form legal action against the US Treasury in an attempt to get Tornado cash's crypto mixer unbanned. -> Substantial rally for TORN
So really the big question is, what comes next in this story?
We think that there's a good chance the next thing is Tornado cash is the winner of this legal battle. If this is the case, it could give market makers a solid narrative to pump the TORN token back up, and prices would easily reach $20 or more. The pre-ban price was $30, so even that is a potential target.
It's also possible though that they could lose this, and the TORN token would need to have a small correction. However, it's not likely that even if they lose prices fall too much lower since they have already been hammered down massively. Basically, the risk and reward is greatly skewed to the upside, since if this plays out in Tornado cash's favor, the token will likely pump massively, and if it doesn't, there probably won't be much more than a 20% correction to the downside as a result. I got the 20% level from just looking at the current price and seeing how much lower it would have to go to reach the local low where the price bottomed right before the announcement of the lawsuit in the first place. The difference between a reward of 100% and a risk of 20% is substantial.
The other thing I will mention for Tornado cash that makes it an attractive purchase is that the market cap is only around $15 million meanwhile the daily volume has been able to reach levels of over $50 million during manipulation pumps and even during normal times stays above $10 million per day pretty easily. This kind of turnover shows us that there are a lot of traders willing to speculate on this token. The market makers know from experience that these traders who are providing $10 million in daily volume will happily buy the token up if it starts rising rapidly. All they need to do is have at least say $10 million in stablecoins, and start layering in massive bids and clearing out the asks from the order book. It doesn't cost much at all to move a low cap like this, and the returns can be quite huge for manipulators.
It's hard to understate how many eyeballs are eagerly watching to see if TORN token moves, and would gladly buy it as soon as a rally starts. There is $195 million in TVL (total value locked) into the Tornado cash protocol itself. This alone makes it crystal clear both big money and retail are interested in this coin.
I think you retail traders will love me for being bullish on a crypto for once.
Thanks for playing.