
TeraWulf Inc. (NASDAQ:WULF) hit a technical roadblock, forming a Death Cross -- a classic bearish signal that suggests trouble ahead.
Despite an eye-popping 102% revenue surge, the stock has been in a free fall, shedding over 43% year to date and 35% in the past month alone.
Investors are now left wondering: is this a moment of capitulation, or could WULF stock stage a surprise rebound?
Chart created using Benzinga Pro
Death Cross Spells Trouble
The Death Cross occurs when a stock's 50-day simple moving average dips below its 200-day simple moving average, often viewed as a strong bearish indicator. Supporting this grim picture, TeraWulf stock at $3.04 sits well below key moving averages: the eight-day at $3.51, the 20-day at $4.02, the 50-day at $4.93 and the 200-day at $5.07.
With these levels acting as resistance, TeraWulf stock remains in a downtrend.
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Bearish Trend, But Signs Of Accumulation?
While the short-term trend remains strongly bearish, some traders might find a glimmer of hope. Buying pressure has started to emerge, which could indicate a potential shift in sentiment if momentum builds.
The Moving Average Convergence Divergence (MACD) indicator sits at a negative 0.53, reinforcing the bearish stance, while the Relative Strength Index (RSI) of 33.30 suggests TeraWulf stock is approaching oversold territory.
Fundamentals vs. Technicals: Who Wins?
Despite the technical weakness, TeraWulf's fundamentals paint a different picture. The company posted a massive 102% revenue increase to $140.1 million, fueled by strong Bitcoin (CRYPTO: BTC) mining output and a lucrative 10-year data center lease with Core42.
But, operational costs remain a concern and the market reaction has been harsh.
If sentiment shifts, a rebound could be in the cards -- but for now, the Death Cross is the dominant force.
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