Toncoin Rises 27% After Telegram Stakes 2.2M TON
Toncoin jumped 27% on May 5 to $1.74 after Telegram staked 2.2 million TON and a protocol upgrade cut fees, ending a four-month accumulation range.
Toncoin rose 27% on May 5, closing at $1.74 after Telegram staked 2.2 million TON to become the largest validator on the TON network. The price move ended a four-month consolidation between $1.20 and $1.55.
Telegram founder Pavel Durov confirmed the staking activity, which occurred on April 30. A protocol upgrade that took effect on May 1 reduced transaction fees to about $0.0005, according to network updates. The staking and lower fees coincided with the May 5 price action.
On the daily chart, the May 5 candle closed above the accumulation zone and reached the 0.236 Fibonacci retracement of the decline from an August 2025 high of $3.75 to a February low of $1.26. Daily trading volume expanded to its highest level in roughly seven months.
Technical indicators on the daily timeframe showed the relative strength index moving above 70 for the first time since February and Bollinger Band width increasing after a period of compression. Bitcoin gained about 3% on the same session; Toncoin’s intraday gain outpaced that broader market move.
Shorter-term charts showed stronger momentum. The four-hour RSI approached 90 and the MACD histogram printed larger green bars on successive candles. Traders tracking the charts expect a likely retest of recent levels rather than an uninterrupted rally.
Key near-term support levels are $1.52, the upper boundary of the recent accumulation range, and $1.38, the mid-range where the rally began. A hold of $1.52 on a retest would be viewed as a higher-confidence entry point. On the upside, targets include the 0.382 Fibonacci retracement near $2.12 and the 0.618 retracement near $2.74. A close back below $1.38 would call the breakout into question.
On-chain activity showed large holders accumulating during the four-month consolidation that followed a steep January selloff. Daily volume had been trending lower since October 2025 before the May 5 expansion, indicating renewed buying interest on the breakout day.
Toncoin is the native token for fees and staking on the TON blockchain. Telegram’s MTONGA roadmap aims to position TON as a near-feeless settlement layer for the messenger’s user base, which could affect future network activity and staking demand.
