Chainlink has temporarily lost the support at $6
Michaël Van De Poppe expects the price to rally to $16 next year
LINK faces pressure, and the momentum is bearish
Chainlink (LINK/USD) was trading $5.74 as of press time. Technical indicators show that the cryptocurrency has lost support at $6, although a bear momentum is yet to be confirmed. Will the new year spell doom if bulls do not recover above $6?
Potentially yes, since LINK bulls have always defended $6. Any time the price crashes below this level, buyers arrest it quickly, making it an important zone. A loss of $6 will, therefore, be a bear trigger for LINK in early 2023.
Crypto analyst Michaël Van De Poppe expects Chainlink to be bullish next year. According to Poppe, Chainlink will rally to $16 if bulls reach a resistance area of $7.78. However, Poppe says LINK can fall below $5 before igniting a bullish push.
LINK price and technical outlook
LINK is consolidating within a range of between $6 and $8. Any break below the range low could take the cryptocurrency down. Bulls will gain interest if the cryptocurrency breaks above the range low.
Technically, selling pressure is high on LINK. The RSI points down and remains near the oversold region. A further decline heightens the bear pressure, with LINK now staring at a possible drop below the consolidation. The new few days of trading will be exciting to watch how LINK behaves around the support.
Can LINK recover the $6 level?
Although a price below $6 would be considered bearish for LINK, we need to watch the close of the daily candlestick. A bullish reversal will be confirmed if the candlestick closes with a long wick on the lower side (bullish pin bar).
Conversely, a bear market will be confirmed if LINK closes with a long wick on the upper side and the price breaks further lower. For LINK bulls, it is important to wait for confirmation.
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