TeraWulf Soars 10.6% on Intraday Surge: What's Fueling the Momentum?

Summary
• TeraWulf (WULF) surges 10.6% to $12.71, breaking above its 30D moving average of $13.28
• Intraday range spans $11.55 to $12.73, with turnover hitting 21.7 million shares
• RSI at 23.28 signals oversold conditions, while MACD (-0.61) hints at bearish divergence
• Options frenzy: 1869 contracts traded for WULF20260109C13.5, with implied volatility spiking to 87.45%

Today’s explosive move in WULF has ignited a firestorm of speculation. The stock’s 10.6% rally—a stark reversal from its 52W low of $2.06—has traders scrambling to decode the catalyst. With the blockchain sector itself in flux and COIN’s 5.04% gain adding context, this surge demands a granular look at technicals and options activity to separate signal from noise.

Short-Term Bearish Trend Reverses as WULF Surges on Intraday Volatility
WULF’s 10.6% intraday jump defies its short-term bearish trend, as evidenced by the MACD (-0.61) and RSI (23.28) both signaling oversold conditions. The price has rebounded from the lower Bollinger Band ($9.99) to test the middle band ($13.24), suggesting a potential reversal. The 30D moving average ($13.28) now acts as a critical psychological level. While the 200D MA ($7.95) remains a distant support, the immediate catalyst appears to be a combination of short-covering and speculative buying in call options, particularly around the $12.5–$13.5 strike range.

Blockchain Sector Gains Momentum as COIN Leads with 5.04% Rally
The blockchain sector is showing mixed signals, with COIN’s 5.04% gain outpacing WULF’s 10.6% surge. While COIN’s rally reflects broader crypto market optimism, WULF’s move is more idiosyncratic, driven by its technical setup and options activity. The sector’s underperformance relative to WULF suggests the latter’s move is stock-specific, likely fueled by short-term speculative positioning rather than macro trends.

Options Playbook: High-Leverage Calls and Gamma-Driven Bets
• Technical Indicators:
- 30D MA: $13.28 (below current price)
- RSI: 23.28 (oversold)
- Bollinger Bands: $9.99–$16.50 (price near middle band)
- MACD: -0.61 (bearish divergence)

Trading Setup: WULF’s price action suggests a short-term bullish reversal. Key levels to watch include the 30D MA ($13.28) and the upper Bollinger Band ($16.50). While the 200D MA ($7.95) remains a long-term floor, the immediate focus is on breaking above $13.28 to confirm momentum. No leveraged ETF data is available, but options activity indicates aggressive bullish positioning.

Top Options Picks:
• WULF20260109C12.5
- Type: Call
- Strike: $12.50
- Expiry: 2026-01-09
- IV: 84.55% (high volatility)
- LVR: 18.04% (high leverage)
- Delta: 0.56 (moderate sensitivity)
- Theta: -0.0723 (rapid time decay)
- Gamma: 0.2494 (high sensitivity to price moves)
- Turnover: 106,051
- Why: This call offers a balance of leverage and liquidity. A 5% price move to $13.35 would yield a payoff of $0.85 per contract, making it ideal for a moderate rally.

• WULF20260109C13.5
- Type: Call
- Strike: $13.50
- Expiry: 2026-01-09
- IV: 87.45% (high volatility)
- LVR: 38.27% (extreme leverage)
- Delta: 0.328 (moderate sensitivity)
- Theta: -0.0569 (moderate time decay)
- Gamma: 0.2212 (high sensitivity)
- Turnover: 101,967
- Why: This high-leverage call is a speculative bet for a sharp breakout. While a 5% move to $13.35 would result in zero payoff, a stronger rally above $13.50 could deliver outsized returns. Ideal for aggressive bulls.

Hook: Aggressive bulls may consider WULF20260109C13.5 into a break above $13.28, while cautious traders should eye WULF20260109C12.5 for a measured rally.

Backtest TeraWulf Stock Performance
The backtest of WULF's performance following a 11% intraday increase from 2022 to now shows favorable results. The 3-Day win rate is 52.60%, the 10-Day win rate is 54.55%, and the 30-Day win rate is 61.04%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 28.83% over 30 days, suggesting that WULF can deliver significant gains even after the initial surge.

Bullish Breakout on the Horizon: Key Levels to Watch for WULF’s Next Move
WULF’s 10.6% surge has created a pivotal inflection point. The stock’s ability to hold above $13.28 (30D MA) will confirm a short-term reversal, while a push toward the upper Bollinger Band ($16.50) could reignite long-term optimism. Traders should monitor the 200D MA ($7.95) as a critical support level and watch for a breakdown below $11.55 (intraday low) to signal a potential reversal. With COIN’s 5.04% rally adding sector context, the path of least resistance appears bullish—but only if key technical levels hold. Action Insight: Watch for a break above $13.28 or a breakdown below $11.55 to dictate next steps.