Toncoin (TON) plunged more than 7% in the last 24 hours, dropping from $3.32 to just below $3, reversing much of the gains sparked by rumors of a Telegram partnership with Elon Musk’s xAI.
The sell-off followed initial excitement after Telegram CEO Pavel Durov hinted at a possible collaboration with Musk’s AI company. TON briefly surged to a high of $3.65 before Musk’s denial that any formal agreement had been signed sent the token tumbling. Since then, TON has fallen roughly 17%.
Market sentiment appears to be pricing in the collapse of what could have been a major integration, potentially linking Telegram’s 700 million users with the TON ecosystem.
Despite Musk’s denial, Durov responded quickly, stating the deal has been “agreed in principle” and that only formalities remain pending. TON is the native cryptocurrency of The Open Network, closely tied to Telegram.
Fundamentally, TON continues to advance. Telegram is progressing with TON-based in-app payment features, allowing users to send crypto as easily as messages. This integration, while long-term, gives TON a rare chance to tap into a massive mainstream user base.
Price levels between $3.00 and $3.22 have become critical. A decisive move outside this range could indicate TON’s next trend, especially as on-chain data reveals significant wallet concentration near $3.24, where nearly 740 million tokens are held across 1.21 million addresses, according to crypto analyst Ali Martinez.
Telegram also recently raised $1.7 billion through convertible bonds, allocating $955 million to buy back existing debt and $745 million toward growth initiatives.
Technical Analysis
TON experienced a sharp sell-off, with hourly trading volume surging to over 10.6 million—almost triple its average. Buyers defended the $3.00 level, triggering a V-shaped recovery that lifted the token back above $3.08.
Resistance emerged near $3.22, but bullish momentum helped TON push past $3.08 during a strong rally. Meanwhile, TON perpetual futures open interest climbed 33% to $190 million, marking the highest level since February, signaling that traders expect continued volatility ahead.
