Toncoin Price News: Can TON Rise to $4 With Elon Musk’s X Partnership?

Pavel Durov, the founder of Telegram, tweeted a few hours ago that his company has reached an agreement with X – the social media platform formerly known as Twitter – to give its users in-app access to Grok.

Grok is a generative AI model developed by X’s artificial intelligence company – xAI.

As a result of this partnership, Telegram will receive a $300 million cash and equity investment from xAI along with 50% of the revenue generated by xAI subscriptions via Telegram.

TON is used by Telegram users to make in-app purchases. The launch of Grok and other popular applications within the messaging app could result in higher demand for the token in the near term.

In addition, Durov recently announced that Telegram has surpassed the 15 million mark in paid subscribers and that this number doubled in a year. These subscriptions can also be paid with TON and contribute to increasing its demand as well.

Telegram seems to be betting strongly on making TON a centerpiece of its ecosystem by enabling micropayments, access to decentralized finance (DeFi) platforms, providing subscription discounts, accessing games and cashing out rewards from them, etc.

Considering the sheer size of Telegram’s user base, if TON becomes the preferred payment method within its ecosystem, this should translate into significant demand for the token.

TON Breaks Out of Descending Price Channel

Looking at the daily chart, TON has been in consolidation for a while, although its price action has formed a descending price channel as well.

There has been strong selling pressure every time it gets to the $3.7 level and trading volumes emphasize how relevant this price area is for the market.

The token broke its bullish structure recently and is retesting its second-best higher high from below at this moment.

Depending on where today’s session ends, this could either confirm a reversal as a result of today’s announcement or confirm a bearish outlook.

Momentum indicators were heavily depressed the days before this announcement, but have now surged. The Relative Strength Index (RSI) is now standing at 63, meaning that the trend’s strength has increased.

TON Needs to Stay Above $3.4 to Keep Rallying

Today’s surge has also resulted in a bullish breakout of the token’s price channel. Moving forward, the key support to watch would be the $3.4 level, which has significant relevance from a technical standpoint.

Looking at the hourly chart, the price action has already found support at this level after a strong pullback once TON got to $3.7.

If the $3.4 level holds, this would confirm a bullish outlook and could put the $4 target on the table in the next few days.

Momentum indicators are heavily stretched in the hourly chart but that is normal for this kind of unexpected news-driven moment.

The Relative Strength Index (RSI) surged to 90, which indicates a strong trend. Moving forward, the price could behave rather erratically but, as long as it closes above $3.4, the price action will favor a bullish outcome.