Temptum Price Approaches Triangle Breakout as RSI Signals Bullish Momentum

Temtum ($TEM) has compressed at a critical support level, with price forming a tightening triangle that has historically led to strong upward moves. The recent price action saw the asset touch the lower boundary of the ascending trendline, a level that has held since early 2023. This interaction is reinforced by a weekly RSI forming a higher low at oversold levels, signaling potential bullish momentum as the market approaches the August 8 earnings report [1].

The price has surged by +20.12% on the day, closing at $0.06370, despite a relatively low 24-hour trading volume of $53.71K. The formation of a triangle suggests a period of consolidation, and analysts are watching for a breakout that could be supported by a volume spike and a candle closure above the trendline. At the moment, the price remains within the structure, but the ongoing bullish divergence on the RSI and the stochastic indicator point to increasing momentum [1].

Breakout targets have been identified using Fibonacci extensions. The 1.618 extension sits at $124.01, while the 2.0 extension targets $144.86. These levels serve as potential technical breakout zones but are not guaranteed outcomes. The current green candle suggests the price is showing early signs of breaking out of the triangle, with volume and candle closure expected to confirm the direction [1].

From a market structure perspective, Temtum holds a market cap of $16.4 million with a fully diluted valuation of $95.55 million. The circulating supply is reported at 261.04 million TEM, significantly below the maximum supply of 1.5 billion. This low float contributes to the asset’s volatility, as evidenced by its volume-to-market-cap ratio of 0.3271% per day. The limited liquidity may lead to sharp price swings, especially in response to news or earnings events [1].

Chris, a noted market observer, emphasized the strength of the technical setup, noting that the RSI and price action align closely with a strong buy signal. He highlighted the weekly RSI forming a higher low at oversold levels while price holds at the key support level. The only tail risk, he said, is the earnings report on August 8, though the chart already suggests a strong bullish case [1].

The triangular structure has now reached its apex, and the market is poised for a directional move. The confirmation of a breakout above the triangle would likely trigger a move toward the defined Fibonacci extension levels. Investors are advised to monitor both volume and candle behavior to determine the likely trajectory of the price. The current setup, however, is already indicative of a high probability of a bullish outcome [1].

Source: [1] Temtum Price Compresses at Critical Support as RSI Rebounds, Chart Eyes $144 Breakout (https://cryptonewsland.com/temtum-price-compresses-at-critical-support-as/)