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.

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