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.
LINK/USD Chart by TradingView
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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