TORN's Privacy-Driven Resurgence: On-Chain Momentum and Market Structure Analysis

The Tornado Cash token (TORN) has emerged as a focal point in the privacy-centric crypto space, with recent on-chain activity and technical indicators suggesting a potential renaissance for the protocol. Despite its controversial legal history, TORN's ecosystem is showing signs of resilience, driven by surging transaction volumes and a renewed emphasis on privacy tools in a regulatory-tightening environment. This analysis explores whether TORN can break out of its current price range and, if so, what structural and on-chain factors might propel it toward a $370 target-a level far beyond its current valuation but reflective of broader market dynamics.

On-Chain Activity: A Surge in Privacy Demand

Tornado Cash's on-chain metrics in late 2025 reveal a dramatic uptick in usage. Over the past 30 days, the platform processed $400 million in Ethereum transfers, with 21 addresses linked to PulseX-a PulseChain-based exchange-accounting for nearly one-third of the total value locked, according to a PulseX report. This surge is attributed to both legitimate privacy needs and illicit activity, such as the Garden Finance exploit, where $6.65 million in stolen funds were routed through Tornado Cash, as reported by the Garden Finance incident report. While the latter raises regulatory concerns, the former underscores a growing demand for privacy solutions as governments intensify oversight of crypto transactions.

Transaction volumes have also been bolstered by TORN's role in masking the origins of large capital movements. For instance, the platform's zero-knowledge proofs (zk-SNARKs) have become a critical tool for users seeking to obscure transaction trails, particularly in jurisdictions with stringent anti-money laundering (AML) laws. This demand is further amplified by the recent U.S. Court of Appeals ruling that Tornado Cash's smart contracts are not subject to direct sanctions, offering a degree of legal clarity, as noted in the Fifth Circuit ruling.

Technical Indicators: A Mixed but Bullish Outlook

TORN's price action in the past 90 days has been volatile but shows signs of consolidation. The token surged 34% during this period, despite a 15% dip to $10.30 in late August following a guilty verdict against its founder for unlicensed operations, according to a TORN price analysis. As of November 2025, TORN is retesting key resistance at $12.40 in an ascending triangle pattern, with technical analysts projecting a potential $20 target if the price sustains above this level, as noted in the TORN price analysis.

Key indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) provide a cautiously optimistic outlook. The RSI has climbed to 57, indicating moderate bullish momentum, while the MACD has turned positive on the 4-hour chart, according to the TORN price analysis. However, daily trading volume remains relatively low at $84.9K, suggesting weak conviction in a breakout. For TORN to reach $370-a level currently 30 times its price-broader market conditions, such as a crypto bull cycle or institutional adoption, would need to align.

Market Structure: Legal Uncertainty vs. Institutional Endorsement

TORN's path to a $370 breakout hinges on resolving its legal ambiguities. While the Fifth Circuit's ruling has shielded the protocol from direct sanctions, the ongoing trial of co-founder Roman Storm and concerns about its use in laundering post-hack funds remain headwinds, as detailed in the Fifth Circuit ruling. However, the Ethereum Foundation's recent endorsement of privacy as a "protocol cornerstone" could mitigate these risks by legitimizing TORN's utility in the broader blockchain ecosystem, as reported by the Ethereum Foundation blog.

From a market structure perspective, TORN's tokenomics also play a role. With a capped supply of 10 million tokens and 40% currently in circulation, the token's scarcity could drive demand if institutional investors begin treating it as a privacy-focused asset. Additionally, the DAO's governance model-where TORN holders vote on protocol upgrades-positions the token as a key player in shaping the future of decentralized privacy tools.

Conclusion: A Long-Term Play on Privacy

While a $370 price tag for TORN remains aspirational, the token's on-chain activity and technical indicators suggest a strong foundation for growth. The surge in transaction volumes, coupled with the Ethereum Foundation's support, indicates that privacy will remain a critical use case in the crypto space. However, TORN's success will depend on its ability to navigate regulatory scrutiny and demonstrate utility beyond its controversial reputation. For investors with a long-term horizon, TORN represents a high-risk, high-reward bet on the future of decentralized privacy.