TeraWulf (WULF) Price Forecast: Breakout Retest Signals Trend Continuation

Breakout Structure Holds After Trend High

Shares of TeraWulf Inc. (WULF) showed signs of extending recent gains after posting a one-day bullish reversal off a test of support at the 10-day moving average on Friday. This action appears to have completed a two-day pullback to support near the 10-day average, following a new trend high of $20.98 registered on Tuesday. The advance to the new high triggered a breakout of a 25-week basing pattern last week, and the breakout was confirmed with a daily close above base high of $18.51.

Business Context and Early Trend Development

TeraWulf builds and operates sustainable data centers for bitcoin mining and AI/HPC workloads. Its stock likely completed its first minor pullback following the base breakout to new trend highs, setting the stage for a potential continuation higher in the near-term. A first target zone around a 161.8% extension of the initial downswing at $21.12 has essentially been reached. But a short pullback to the 10-day average and bullish response suggests that the high could be broken soon.

This price behavior establishes the 10-day moving average as key near-term support for the developing trend. If it is broken, the 20-day moving average, followed by the 50-day moving average, become key dynamic trend support indicators to watch.

Momentum Reacceleration and Second-Leg Setup

Since the breakout, a second leg up appears likely. The beginning of that second leg up is at Thursday’s higher swing low of $18.25. Also, notice that a bull hammer formed on Thursday, and it triggered today and confirmed with a closing above Thursday’s high of $18.25. Higher price zones of interest start with a 161.8% Fibonacci retracement of a shorter downswing within the base at $21.82, followed by the confluence of two Fibonacci extensions at $25.28. A simple measured move of the most recent sharp advance to Tuesday’s high suggests a possible upside target around $25.92.

Continuation vs. Pullback Risk Framework

Despite the potential for a continuation in the near-term, at some point a more substantial pullback will likely develop. That pullback will be important because the reaction near the lower but more significant moving averages can be more telling about the strength and durability of the developing bull trend.