Key Takeaways
- Toncoin surged 12% following Telegram’s $300 million partnership with Elon Musk’s xAI to integrate Grok.
- A golden cross appeared on the MACD, where the 12 EMA crossed above the 26 EMA on the daily chart.
- TON could target $4.10 if support at $2.95 holds; however, a breakdown could trigger a drop toward $2.79.
Toncoin (TON), the token linked to the Telegram messaging app, jumped 12% over the past 24 hours after Telegram announced a $300 million partnership with xAI, Elon Musk’s artificial intelligence startup.
Before the news, TON was trading below $3. It’s now hovering around $3.31, marking a strong breakout that has caught traders’ attention.
So, what’s next for the altcoin after this surge?
Telegram’s Alliance Lifts Toncoin Out of Bear Zone
Before Wednesday’s breakout, Toncoin’s price had been trading within a descending triangle.
As seen below, the triangle consists of a falling trendline that kept the price trapped with a horizontal support.
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However, TON did not stay trapped for long.
According to CCN’s findings, the altcoin broke above the falling trendline shortly after Telegram CEO Pavel Durov revealed that he and Elon Musk had struck a deal to bring Grok, xAI’s conversational AI tool, to Telegram.
Durov also confirmed that xAI will pay Telegram $300 million in cash and equity, a move that appears to have supercharged TON’s bullish momentum.
“Telegram and xAI have agreed to a 1-year partnership to distribute Grok to Telegram’s billion+ users and integrate it into its apps. Telegram will receive $300 million in cash and equity from xAI, plus 50% of revenue from xAI subscriptions sold via Telegram,” Durov stated via X.
Beyond TON’s 12% surge, a closer look at the chart reveals a golden cross forming on the Moving Average Convergence Divergence (MACD) indicator.
This crossover formed when the 12 EMA (blue) jumped past the 26 EMA (orange).
If this bullish momentum holds, Toncoin’s price could continue climbing, with the next key target hovering around $4.10.
However, this depends on TON staying above the crucial horizontal support near $2.95. Any dip below that level could signal trouble ahead.
TON Price Analysis: Rally to Continue
Like the daily chart, the 4-hour analysis also presents a bullish outlook. According to the image below, the Awesome Oscillator (AO) reading is in the positive territory, indicating bullish momentum.
If sustained, Toncoin’s price is likely to rise past the resistance at $3.67 and hit the peak of the wick. In addition, the green line of the Supertrend is below TON’s price, indicating a buy signal.
Assuming the red line of the indicator was above the price, it would have indicated a sell signal. Historically, as shown below, when the red line is on top, TON experiences correction.
But since it is the other way around this time, the altcoin is likely to climb to $3.87 at the 0.236 Fibonacci level. If demand for Toncoin increases, it might break $4 in the short term.
However, if TON slides below the horizontal support, this forecast might not come to pass. If that were to happen, the cryptocurrency might fall toward $2.79.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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