TeraWulf Inc. WULF has encountered a significant technical hurdle by forming a Death Cross. This pattern is traditionally recognized as a bearish signal, indicating potential difficulties for the stock.

Even with an impressive 102% revenue increase, TeraWulf’s stock has plummeted over 43% year to date, including a staggering 35% decline just in the past month.

Investors are now left with a crucial question: is this a moment of capitulation, or could WULF Stock experience an unexpected rebound?

Chart created using Benzinga Pro

The formation of the Death Cross occurs when a Stock‘s 50-day simple moving average falls below its 200-day simple moving average, typically interpreted as a decisive bearish indicator. Currently, TeraWulf’s stock trades at $3.04, significantly below key moving averages. The eight-day average stands at $3.51, the 20-day at $4.02, the 50-day at $4.93, and the 200-day at $5.07.

These moving averages are acting as resistance points, keeping TeraWulf Stock entrenched in a downtrend.

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While the near-term trend appears overwhelmingly bearish, some traders may spot a flicker of optimism. There are indications of emerging buying pressure, which could suggest a potential change in market sentiment should momentum increase.

The Moving Average Convergence Divergence (MACD) indicator currently sits at a negative 0.53, emphasizing the prevailing bearish outlook. Meanwhile, the Relative Strength Index (RSI) of 33.30 hints that TeraWulf Stock is nearing oversold conditions.

Despite the bearish technical indicators, TeraWulf’s fundamentals provide a more optimistic narrative. The company reported a substantial 102% revenue boost to $140.1 million, driven by robust Bitcoin BTC/USD mining output and a lucrative 10-year data center lease with Core42.

However, operational costs remain a pressing concern, leading to a harsh market reaction.

If market sentiment shifts favorably, a rebound could emerge; for the moment, though, the Death Cross remains a significant influence.

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