TeraWulf Inc. (WULF) had a bit of a rollercoaster Monday. The stock climbed to a fresh 52-week high of $29.84 in early trading, only to reverse course as investors decided to cash in some chips. By the time the dust settled, shares were down about 1.74% at $28.48.

That kind of profit-taking is pretty normal after a big run, but there's more going on under the hood that's worth digging into.

Short Interest: A Slight Easing

During the latest reporting period, short interest in TeraWulf ticked down from 110.27 million shares to 108.78 million. That still represents a hefty 25.85% of the float — meaning more than a quarter of the shares available for trading are being bet against. But the decline suggests some bears are covering their positions, possibly ahead of more positive news.

Based on recent average daily volume of 27.07 million shares, it would take short sellers about 4 days to close out all their positions. That's not extreme, but it's enough to add some fuel if the stock starts moving up sharply.

BofA Securities Weighs In With a Bullish Call

On June 15, Bank of America Securities analyst Michael Funk initiated coverage on TeraWulf with a Buy rating and a $34 price target. That target is based on a 9.5x EV-to-revenue multiple applied to his 2028 revenue forecast.

Funk sees the company's capacity pipeline expanding dramatically — from 60 megawatts today to over 1 gigawatt — as TeraWulf pivots toward high-performance computing infrastructure. The company already had 522 megawatts of contracted capacity in the first quarter of 2026 across its Lake Mariner and Abernathy sites.

But it's not all smooth sailing. Funk flagged financing access, construction delays, and tenant timing as key risks. He estimates that a 10% to 20% slowdown in megawatt delivery could shave 6% to 12% off 2028 revenue. So the bull case hinges on execution.

Technical Picture: Still Bullish, But Watch the Pullback

Despite Monday's dip, the chart looks pretty healthy. WULF is trading 8.6% above its 20-day simple moving average ($26.12), 21.3% above its 50-day SMA ($23.39), 46.1% above its 100-day SMA ($19.42), and a whopping 75.5% above its 200-day SMA ($16.17).

The 20-day SMA sitting above the 50-day SMA keeps the near-term trend pointed up, and the golden cross — where the 50-day crossed above the 200-day — has been in place since August 2025, reinforcing the longer-term uptrend.

So while Monday's pullback might sting a little, the underlying trend is still your friend. The key levels to watch are the 20-day SMA around $26 and the recent high of $29.84. A break above that high could reignite the rally, while a drop below the 20-day might signal a deeper correction.