Yes, you can recharacterize the 2021 Roth contribution as a traditional IRA contribution and then convert it in 2022. If you still have a loss when you convert it in 2022 you will have a basis carryover to 2023. Please check your 2022 Form 8606 line 14 when you file your 2022 tax return next year.
@ anbuitachi
@ Katerinablondy Did you enter only a $6,000 traditional IRA contribution on your 2021 tax return as Opus 17 mentions? Did you have enough taxable compensation (earned income like wages, self-employment)? The funds moved to the Roth IRA are not a Roth contribution, do not enter them as contributions in the IRA contribution interview.
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