Toncoin has been among the most-watched tokens this week.
The digital asset flourished on Wednesday following two bullish announcements tied to Telegram.
First and foremost, what’s the connection?
Toncoin is the native token of The Open Network, which is Telegram’s blockchain infrastructure.
News about BlackRock, Citadel, and Mubadala backing Telegram’s $1.5 billion bond issuance elevated Toncoin prices from May 28 lows of $2.9831.
Telegram CEO Pavel Durov supercharged the rally after confirming collaborating with Elon Musk’s xAI to bring Grok to the leading messaging platform.
The news bolstered optimism, promising AI integration into all Telegram features and financial support.
Durov stated that Musk’s artificial intelligence initiative committed $300 million and had agreed to split half of the subscription revenue from xAI features sold through Telegram.
The developments pushed TON to intraday highs of $3.6784 – a 23% uptick from a 24-hour low.
The significant rallies reflected investor and trader excitement, with many speculating about the crypto’s potential future with Telegram integrating artificial intelligence for over 1 billion users.
Indeed, Grok could have boosted Telegram activity and growth by attracting key collaborations. Such developments could propel Toncoin’s adoption.
Musk denies signing any deal with Durov.
Nevertheless, the excitement was short-lived as Elon Musk disagreed with Durov’s claims.
No deal has been signed
Musk’s post triggered criticism over the entire announcement.
The plain denial indicated there had been no agreement between the parties.
The crypto community responded swiftly, and many with a negative tone.
While Telegram’s CEO defended his claims, Toncoin started erasing its latest gains, possibly due to panic selling.
An X user Nikita Kolysko accused Pavel Durov of market manipulation, stating:
This perfectly illustrates how manipulative the market is and how they’ll always try to get you liquidated.
A prime example of market manipulation: 1. @durov tweets that Telegram and xAI have agreed on a 1-year partnership to integrate Grok into Telegram — $TON soars to $3.68. 2. Hours later, @elonmusk responds: “No deal has been signed.” 3. @durov later clarifies: “True. Agreed in
TON continued its reversals from the May 28 high, losing nearly 3% in the past 24 hours to hover at $3.25 during this publication.
The slump reflects the community’s realization that the promised AI integration may never happen, or at least not as the CEO portrayed.
TON price outlook
The native token hovers at $3.25, hinting at further downtrends in the short term.
Toncoin’s trading volume has plummeted by 60% within the past day. That signals dwindled investor interest in the altcoins.
Declined trading volumes during bearish price actions often lead to more dips.
Technical indicators show that bears dominate TON’s near-term price movements.
The Moving Average Convergence Divergence has formed a visible bearish divergence with the signal line on the 4H timeframe.
The emerging red histogram confirms seller resurgence.
Also, the Relative Strength Index leans downward around the neutral level of 51.
That indicates bears resurfacing and a substantial room for price dips.
Thus, Toncoin will likely dip to its May 28 low of $2.9831 in the coming hours.
Continued selling might plunge the alt to the key support zone at $2.36.
As highlighted here, TON needs a decisive closing above $3.7212 to invalidate the bearish case.
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