Chainlink price drops 12% amid limitations to LINK v0.2 community pool

• Chainlink price is down almost 12% since December 11 when LINK staking V.02 general access went live.
• Limitations to the v0.2 community pool seem to have obstructed LINK from achieving its upside potential.
• LINK could extend the fall 8% to find support at the $13.330 level as momentum wanes and the bears gain ground.
• The bearish thesis will be invalidated upon a three-day candlestick close above the midline of the supply zone at $17.163.

Chainlink (LINK) price is trading with a bullish bias, coming on the back of a successful but gloomy event on December 11. Depending on how the bulls play their hand, the next move could be critical in determining the short-term fate of LINK.

Also Read: Chainlink price could succumb to profit taking by whales

Chainlink opens LINK v0.2 staking for general access but with limitations

Chainlink (LINK) price is down 12% after the network unveiled its LINK v0.2 community staking pool to the public for general access. The pool was launched in November 2023 but was only open to the public starting December 11, allowing users to lock LINK for a 4.3% variable (reward).  

After Chainlink announced that LINK v0.2 staking pool was open for general access, the community pool was filled almost immediately, with the users meeting the 40,875,000 LINK allocation for the pool as they instantly transitioned from v0.1 to v0.2.

Limitations of LINK v0.2 Community Pool

It should be noted that public access does not mean LINK holders who missed the Early Access phase can now automatically stake the token. Rather, the new users can only “stake LINK whenever an existing stake completes a withdrawal and pool space becomes available.”

It therefore means that users are now expected to wait for the early stakers to unstake their LINK tokens for a chance of their own.

Also, supposing an existing staker plans to exit their position, then the LINK v0.2 contract implements a 28-day unbonding period. This is besides an extra seven-day period where the user can completely claim their locked access.

To put it in perspective, now that the Chainlink Early Access opened on December 11, a user must wait until at least January 15 for the opportunity to join the LINK community staking pool.

The entire working dynamic bases on the assumption that a staker enables withdrawal on the same day they originally staked.

Intrinsically, this underscores the challenge for new community members who may want access to the LINK pool.

Chainlink price outlook after a rejection for the three-day supply zone

Chainlink price continues to consolidate above $14.256 after a rejection from the supply zone extending between $16.221 and $18.080. With the $13.330 support level holding, the odds continue to favor the upside with the current market outlook presenting a strong uptrend as Chainlink price bounces between the upper band at $18.419 and the centerline (yellow band) at $13.368. A cross below the centerline would be a fair warning of a trend reversal to the downside.

Increased buying pressure above current levels could see Chainlink price overcome the supply zone, confirming the move with a three-day candlestick close above the midline at $17.163. Such a move would set the tone for a continuation of the trend north, potentially going as far as the $20.000 psychological level.

LINK/USDT 3-day chart

On the other hand, increased profit booking could see Chainlink price fall 8% to lose the immediate support at $13.330 before testing the centerline. A break and close below this yellow band on the three-day timeframe would set the tone for an extended slump, possibly gong as low as plunging LINK price back in the consolidation phase between $5.565 and $8.912.