Chainlink Price Forecast: LINK ready for 50% breakout if critical support holds
|- Chainlink price remains bounded inside an ascending parallel channel on the daily chart.
- Bulls continue defending the lower support, indicating LINK is poised to rebound.
Chainlink seems poised to bounce off from a crucial support level if history repeats itself.
Chainlink price targets $18
Despite the recent sell-off from $13.27 to $12.15, LINK bulls remain in control of the daily uptrend. Chainlink price established a higher high at $14.56 and a higher low at $12.31 compared to previous levels. Now, the decentralized oracles token needs to move above the 50-day SMA at $13 to advance further.
If LINK price closes above the 50-day SMA, it will aim for an initial price target of $15.2 which is where the channel's middle trendline sits. Slicing though this hurdle could see it aim for the pattern's upper boundary at $18.
LINK/USD daily chart
Nonetheless, the TD Sequential indicator recently presented a sell signal on LINK's daily chart.
The bearish formation appears to have been validated as a red two candlestick has emerged. The TD setup anticipates another two daily candlesticks correction that could see Chainlink price test the 100-day SMA for support before it rebounds to the targets previously mentioned.
LINK/USD daily chart
It is worth noting that a breakdown below the critical support level at $12 may invalidate the optimistic outlook. If this were to happen, Chainlink price can drop by more than 30% towards $7.74.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.