TON Falls 7% as Sell-Off Tied to Musk’s Dispute of Telegram, xAI Partnership Continues
TON’s price experienced a significant drop, falling over 7% in 24 hours from $3.319 to below $3. This decline follows a period of heightened speculation surrounding a potential partnership between Telegram and Elon Musk’s xAI. Initial rumors of collaboration propelled TON to a high of $3.65. However, Musk’s denial of a signed agreement triggered a sharp reversal, wiping out nearly all the gains. Since the denial, TON is down 17%.
Despite the setback, Telegram CEO Pavel Durov clarified that the deal is “agreed in principle,” with formalities pending. This announcement, while offering some reassurance, hasn’t stemmed the immediate price decline. The market’s reaction reflects the potential loss of a major integration with Telegram’s 700 million users.
Telegram’s ongoing development of TON-based in-app payments remains a key long-term factor. This feature positions TON uniquely, offering potential access to a vast mainstream user base for crypto transactions. Crucial support and resistance levels are now situated between $3.00 and $3.22. A decisive break above or below this range will likely indicate the next significant price movement.
On-chain data reveals substantial wallet concentration around $3.24, with nearly 740 million tokens held across 1.21 million addresses, as noted by analyst Ali Martinez. This concentration highlights a potential support area.
This week, Telegram secured $1.7 billion through convertible bonds. $955 million will be used for existing bond buybacks, while the remaining $745 million will fuel growth initiatives. The funding news, however, has yet to significantly impact TON’s price.
Technically, TON experienced a rapid sell-off, with hourly volume nearly tripling its average. Buyers emerged at the $3.00 level, leading to a V-shaped recovery to $3.086. Resistance formed briefly at $3.22. The surge in TON perpetual futures open interest, up 33% to $190 million—its highest since February—indicates traders anticipate continued volatility. The near-term outlook remains uncertain, contingent on market sentiment and the finalization (or lack thereof) of the Telegram-xAI partnership.
