Toncoin (TON) experienced a significant decline in the past 24 hours, dropping over 7% from $3.319 to a low just below $3. The downturn followed a buzz surrounding a potential partnership between the popular messaging app Telegram and Elon Musk’s artificial intelligence venture, xAI, only to be overturned by a swift denial from Musk himself.
This downward trajectory seems to have been exacerbated by previous excitement; the price of TON initially surged to a high of $3.65 following a hint from Telegram CEO Pavel Durov about a collaboration with xAI. However, Musk’s subsequent statement clarified that the deal had not yet been finalized, sparking a sharp sell-off that has seen TON drop 17% since its peak.
The markets currently reflect a cautious sentiment as investors appear to be adjusting their expectations regarding what might have been a landmark integration potentially involving Telegram’s massive user base of 700 million. This recalibration has almost eroded the recent gains TON has achieved.
Nonetheless, Durov provided some comfort to investors by stating that the deal had been “agreed in principle,” with only formalities left to be completed. As the native token of The Open Network, Toncoin remains closely tied to Telegram’s functions.
Crucially, TON’s fundamentals continue to evolve. Telegram is moving forward with plans for TON-based in-app payments, facilitating a method for users to transact in crypto much like they would send messages. This feature positions TON uniquely, granting it potential access to a large, mainstream user base over time.
Currently, price levels between $3.00 and $3.22 are crucial levels to monitor. Any breakdown or breakout from this range could dictate future market movements, particularly as on-chain data reveals significant wallet concentration around the $3.24 mark, where around 740 million tokens are distributed across 1.21 million addresses, as noted by crypto analyst Ali Martinez.
Interestingly, Telegram recently raised $1.7 billion through convertible bonds. The plan involves using $955 million of this total to repurchase existing bonds, while the remaining $745 million will be earmarked to fuel their growth initiatives.
Technical Analysis Breakdown
- TON faced a notable sell-off, with trading volume spiking to over 10.6 million in a single hour, nearly tripling the average volume.
- Buyers entered the market at the $3.00 level, aiding a recovery that propelled the token back to $3.086, showcasing a V-shaped recovery pattern.
- A temporary resistance was observed at $3.22, but bullish momentum managed to push the token above $3.08 during a notable surge.
- Open interest in TON perpetual futures rose by 33% to hit $190 million, reaching its highest level since February, which suggests that traders are preparing for further market volatility.
