Chainlink (LINK) witnessed a 12% decline in its price following restrictions imposed on the LINK v0.2 community pool. The setback occurred after the network’s announcement on December 11, marking a significant event that holds implications for the short-term trajectory of LINK, depending on the strategic moves made by bullish investors.
The dip in Chainlink’s price was a direct result of the unveiling of the LINK v0.2 community staking pool to the public. Although the pool was launched in November 2023, it only became accessible to the public on December 11, offering users the opportunity to lock LINK with a 4.3% variable reward.
Following the public announcement, the community pool swiftly reached its maximum capacity of 40,875,000 LINK, with users seamlessly transitioning from v0.1 to v0.2.
Chainlink (LINK) Staking Clarification For Public Access And Early Participants
It’s important to clarify that public access does not automatically grant LINK holders, who missed the Early Access phase, the ability to stake the token. Instead, new users can only stake LINK when existing stakers complete a withdrawal and pool space becomes available.
This necessitates users to patiently wait for early stakers to release their LINK tokens, with a potential waiting period until at least January 15, given the 28-day unbonding period and an additional seven-day period for full access.
The situation underscores the challenge for new community members seeking entry into the LINK pool. Chainlink’s price currently maintains consolidation above $14.256, having faced rejection from the supply zone between $16.221 and $18.080.
With support holding at $13.330, the market outlook favors an upside potential, with the current trend bouncing between $18.419 and the centerline (yellow band) at $13.368. A breach below the centerline would signal a possible trend reversal.
An upswing in buying pressure may propel Chainlink’s price beyond the supply zone, confirmed by a three-day candlestick close above the midline at $17.163, setting the stage for a continued northward trend, potentially reaching the psychological level of $20.000.
Conversely, heightened profit booking could lead to an 8% drop in Chainlink’s price, jeopardizing the immediate support at $13.330 before testing the centerline. A conclusive break below the yellow band on the three-day timeframe would indicate a potential extended decline, possibly revisiting LINK’s consolidation phase between $5.565 and $8.912.