Toncoin Surges 23% on Telegram AI Integration News, Then Drops 3% After Musk Denial

Toncoin, the native token of The Open Network, has been a focal point of attention this week due to significant developments tied to Telegram. The digital asset experienced a surge on Wednesday following two major announcements related to Telegram. Firstly, news about BlackRock, Citadel, and Mubadala backing Telegram’s $1.5 billion bond issuance boosted Toncoin prices from their May 28 lows. Secondly, Telegram CEO Pavel Durov confirmed a collaboration with Elon Musk’s xAI to integrate Grok into the messaging platform, which further elevated Toncoin’s value.

Durov’s announcement included details about Musk’s artificial intelligence initiative committing $300 million and agreeing to split half of the subscription revenue from xAI features sold through Telegram. This news sparked optimism among investors and traders, who speculated about the potential future of Toncoin with AI integration for over 1 billion users. The developments pushed Toncoin to intraday highs of $3.6784, marking a 23% increase from its 24-hour low.

However, the excitement was short-lived as Elon Musk denied Durov’s claims. Musk’s tweet stating “No deal has been signed” triggered criticism and skepticism within the crypto community. The denial indicated that there had been no agreement between the parties, leading to a swift response from the community, with many expressing negative sentiments. While Durov defended his claims, Toncoin began to erase its latest gains, possibly due to panic selling.

An X user, Nikita Kolysko, accused Durov of market manipulation, stating that the situation perfectly illustrated how manipulative the market can be. Kolysko’s comments highlighted the volatility and uncertainty that followed the conflicting statements from Durov and Musk. Toncoin 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.

The native token hovers at $3.25, hinting at further downtrends in the short term. 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. However, the current situation suggests a bearish outlook for Toncoin, with technical indicators showing that bears dominate its near-term price movements. The Moving Average Convergence Divergence has formed a visible bearish divergence with the signal line on the 4H timeframe, and the Relative Strength Index leans downward around the neutral level of 51. This 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.