Market prices drop ahead of the Fed's interest rate decision

The price of Litecoin (LTC) has dropped below the crucial support level of $95, continuing its downward trajectory despite the upcoming Federal Reserve (Fed) interest rate decision.

As the last time market prices dropped ahead of the Fed’s interest rate decision was not heeded by traders, it might be useful to consider other technical factors that could be influencing this decline.

One factor that could be contributing to the price action is the fact that the fair value gap has now been closed, but the order block’s influence in the price action is quite evident.

This could be a key factor that traders should keep an eye on how the price action unfolds in the next few days.

LTC Price Action: Bulls Could Take Over Above $95

The price action over the last few days has seen LTC tagging the same order block multiple times, which could be seen as a sign that the bullish outlook for LTC might be coming to an end.

However, it is important to note that multiple tags of an order block tend to reduce its relevance significantly and this one has been tagged twice already.

Hence, LTC’s bullish outlook has not been fully invalidated yet.

Furthermore, trading volumes have doubled the average in the last two days, emphasizing the relevance of this price level for market participants.

Today’s retreat also occurs as LTC tags its 200-day exponential moving average (EMA). The $95 level can be considered an area of confluence and should be closely watched by traders.

A bullish breakout could result in huge gains for Litecoin in the near term, with a first target set at around $120 as bulls will take over the price action.

Key Areas of Support to Watch For LTC

Finally, heading to a lower time frame, the 1-hour chart shows how strong this retreat has been as LTC has been going down non-stop in the past 8 hours.