Chainlink (LINK) price has shown indications of starting to stabilize after its recent weakness in the market, as the price action has tried to bounce back. Technical indicators suggest that buying is now taking place, implying that selling is likely to ease up temporarily. Nevertheless, decreased trading volumes and low open interest hint at cautious investor behavior.
At the time of writing, LINK is trading at $9.61 at the time of writing. Over the last 24 hours, the token recorded a 1.31% gain, supported by a trading volume of $410.32 million and a market capitalization of $7.01 billion. Despite the small recovery, overall market participation signals remain mixed, with reduced activity across derivatives markets.
Source: CoinMarketCap
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LINK Price TD Sequential Reversal
However, an examination of the latest market data reveals that Chainlink price movement is influenced not only by technical indicators but also by reduced participation in trading. Indeed, crypto analyst Ali Martinez identified a TD Sequential buy signal forming on LINK’s chart on May 20, 2026.
Source: Ali Martinez’s X Post
This kind of signal may serve as an exhaustion pattern in the bearish sentiment, implying that downtrend momentum may have reached its peak. In the case where the same signal persists, Chainlink price may try to bounce back up towards the $10 resistance level.
Chainlink Price Weak Market Activity
However, broader market sentiment readings indicate that investors are more cautious. The trading volume went down by 46.31% to reach $388.74 million, while open interest fell by 7.44% to reach $471.75 million.
Source: Coinglass
Such dynamics indicate that there are fewer derivative contracts held by investors, which reflects a lack of leverage participation in and directional confidence about the future Chainlink price.
In spite of this reduced pace, funding continues to show steady conditions. Open interest-weighted funding was at 0.0063%, which shows that there was limited funding pressure, and there were balanced positions from both sides, long and short.
Source: Coinglass
This means that even though there has been a decrease in activity levels, there is no significant tilt on either side to drive the Chainlink price to extremes.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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