Toncoin surges as Telegram strikes $300M Grok AI deal

• Telegram’s native token, Toncoin, surges in double digits as broader market consolidation continues.
• Telegram partners with Elon Musk’s xAI in a $300 million deal to integrate Grok AI into the messaging app.
• The TON Foundation appoints Nikola Plecas, a former Visa executive, as its new vice president of payments to streamline the platform’s infrastructure.

Toncoin (TON) price is rising sharply to around $3.35 on Wednesday, supported by a strategic deal between the Ton Foundation and Elon Musk’s xAI. 

Ton Foundation partners with Elon Musk’s xAI 

The Open Network Foundation (TON Foundation), the company behind the instant messaging app Telegram, has struck a deal with Elon Musk’s xAI, which will see the Grok AI service integrated within the platform.

Telegram founder and CEO Pavel Durov announced the deal in an X post, revealing that the one-year partnership will bring Grok to billions of active users on the messaging app.

Durov stated that the strategic partnership will involve Telegram receiving $300 million in cash and equity from xAI, in addition to 50% of the revenue generated from subscriptions purchased through the messaging app.

The collaboration with xAI comes amid plans for Telegram to raise up to $1.5 billion via a bond offering backed by key investors such as BlackRock, Mubadala and Citadel. The Ton Foundation intends to use the proceeds to repurchase a debt from Telegram’s 2021 bond issue.

Telegram boasts over 1 billion active users. The company reported $540 million in profit, with revenue exceeding $1.4 billion for the year 2024.

Meanwhile, the Ton Foundation has announced the appointment of former Visa executive Nikola Plecas as the organization’s vice president of payments.

Plecas will help shape and streamline the Ton Foundation’s global payment strategy by overseeing the design, development and scaling of the infrastructure across the ecosystem.

“With a focus on interoperability, reliability, and innovation, he will collaborate closely with ecosystem partners to deliver new payment rails and expand global access to TON-based financial products,” the Ton Foundation said in a blog post.

Toncoin’s price responded impressively to the news, especially the partnership with xAI, rallying over 13% on the day to $3.35. 

Technical outlook: Can Toncoin extend gains after breaking trendline resistance?

Toncoin’s price holds slightly above the descending trendline, currently positioned to offer support.

A buy signal from the Moving Average Convergence Divergence (MACD) indicator supports the bullish outlook. The signal, which occurred when the blue MACD line crossed above the red signal line on Tuesday, encourages traders to buy TON, contributing to the bullish momentum.

Slightly above TON’s current market value of $3.35 is the 12-hour 200-period Exponential Moving Average (EMA), highlighting resistance at $3.45. A daily close above this level is required to ascertain TON’s uptrend strength as traders gauge the potential for a breakout past the hurdle at $3.50, marked in red on the chart.

TON/USDT 12-hour chart

The Relative Strength Index (RSI) is near an overbought position at 64, hinting at a strong uptrend. However, a reversal could be in the offing because overbought conditions often precede pullbacks. 

In that case, traders would be on the lookout for a potential RSI reversal toward the 50 midline, which will signal fading bullish momentum, possibly due to profit-taking. If TON slides below the descending trendline, the next areas of interest would be the 100-period EMA at $3.18 and April’s lowest support area around $2.77.