TON Down 7% as Sell-Off Erupts Over Musk’s Telegram Conflict, xAI Partnership Maintains Momentum

Toncoin (TON) plunged over 7% in the past 24 hours, tumbling from $3.32 to just below $3 as crypto markets reacted to conflicting signals over a rumored partnership between Telegram and Elon Musk’s artificial intelligence firm, xAI.

The drop extends a broader retreat from recent highs. TON had surged to $3.65 earlier this week following comments from Telegram CEO Pavel Durov suggesting a collaboration with xAI was in the works. That excitement was short-lived: Musk swiftly denied any formal deal had been signed, triggering a sharp sell-off.

Despite Musk’s dismissal, Durov maintains that the agreement has been “settled in principle,” citing pending formalities. Nonetheless, traders appear to be pricing in a potential breakdown of talks, erasing nearly all of TON’s recent gains.

Telegram’s Blockchain Vision Still Intact

While the xAI speculation fizzles, Telegram’s broader integration of The Open Network continues. TON remains central to Telegram’s crypto roadmap, with new in-app payment features allowing users to send tokens as easily as messages.

On-chain data from analyst Ali Martinez highlights a key concentration of 740 million TON at the $3.24 level — a cluster that now stands as resistance. Technical traders are closely watching this price zone for any breakout attempt.

Broader Developments

• TON’s hourly trading volume surged past 10.6 million during the downturn — nearly triple its daily average.
• A short-term rebound lifted prices back to $3.08, with $3.22 acting as resistance in the current range.
• Open interest in TON futures jumped 33% to $190 million, the highest level since February, pointing to heightened trader engagement.
• Telegram, meanwhile, completed a $1.7 billion convertible bond raise this week, allocating $745 million to expansion plans that could bolster TON’s long-term ecosystem.

Outlook

TON’s fundamentals remain strong, but price action will likely stay choppy in the near term as markets wait for clarity on the rumored xAI integration. With Telegram doubling down on blockchain infrastructure, TON could still benefit from growing utility — even if Musk isn’t involved.