TLDR
- Toncoin (TON) surged 13.7% in 24 hours following Nikola Plecas’s appointment as VP of TON Foundation
- The rally brought TON to test the $3.35-$3.5 resistance zone for the third time in five weeks
- A proposed xAI-Telegram partnership announcement caused temporary price spike before Elon Musk denied any signed deal
- TON dropped from $3.60 to $3.28 after Musk’s clarification that no agreement was finalized
- Technical analysis suggests TON remains in a month-long trading range between $2.95 and $3.5
Toncoin experienced a sharp rally over the past two days following key developments within the TON Foundation and Telegram ecosystem. The token climbed 13.7% in 24 hours after former VISA executive Nikola Plecas was appointed as Vice President of the TON Foundation.
The rally brought TON to challenge the $3.35-$3.5 resistance zone for the third time in five weeks. This repeated testing of the same price level suggests the token remains trapped in a established trading range.
TON has been trading within a range from $2.95 to $3.5 for almost a month. The mid-range level sits at $3.23. The latest rally moved from the range low to the high in just 36 hours.
At its local peak of $3.7, TON posted gains of 26.5% in under two days. This performance stood out while Bitcoin struggled to climb back above $110,000 and the broader altcoin market moved sideways.
However, the move was halted abruptly just above the range high. At press time, the price had not sustained above the $3.48 resistance level.
The On-Balance Volume indicator showed upward movement as recent sessions saw high trading volume. The Awesome Oscillator appeared to be making a bullish crossover.
Partnership Announcement Creates Volatility
The price action became more volatile following announcements about a potential partnership between Telegram and xAI. Telegram CEO Pavel Durov initially announced that he and Elon Musk had agreed to a one-year partnership to bring xAI’s Grok to Telegram’s billion users.
🔥 This summer, Telegram users will gain access to the best AI technology on the market. @elonmusk and I have agreed to a 1-year partnership to bring xAI’s @grok to our billion+ users and integrate it across all Telegram apps 🤝
💪 This also strengthens Telegram’s financial… pic.twitter.com/ZPK550AyRV
— Pavel Durov (@durov) May 28, 2025
The proposed deal would see Telegram receive 50% of revenue from xAI subscriptions sold via its platform. The agreement would also include $300 million in cash and equity as Telegram looks to raise $1.5 billion via a bond offering backed by BlackRock, Mubadala, and Citadel.
TON rallied following Durov’s announcement, with the token climbing 14% on the day. The price reached $3.60 as traders responded to the partnership news.
However, the rally was short-lived. Elon Musk responded to Durov’s announcement stating “No deal has been signed.” This clarification triggered an immediate price reversal.
Technical Resistance Proves Decisive
TON dropped from $3.60 to $3.28 in the moments after Musk’s tweet. The sharp decline demonstrated how quickly sentiment can shift in cryptocurrency markets.
Pavel Durov later confirmed Musk’s statement was accurate. He posted on X that while they had “agreed in principle,” formalities were still pending.
True. Agreed in principle, but formalities are pending.
— Pavel Durov (@durov) May 28, 2025
The liquidation heatmap showed clusters of liquidity building around the $3.6-$3.66 area since May 10. Another magnetic zone formed at $3.2 over the past week.
Both liquidity clusters were swept during the recent price movement. Such swift moves often hunt liquidation levels and tend to reverse after claiming them.
The technical setup suggests TON remains range-bound despite the recent executive appointment and partnership speculation. The token failed to flip the $3.5 region to support during the rally.
Trading volume remained elevated during the price swings, indicating active participation from both bulls and bears. The rejection at resistance occurred with the token unable to establish a foothold above key levels.
Pavel Durov confirmed that while partnership discussions with xAI continue, no formal agreement has been signed between Telegram and Elon Musk’s artificial intelligence company.
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