LTC Price Has Been Retreating Today After It Tagged an Order Block

Lightweight cryptocurrency Litecoin (CRYPTO: LTC) has been struggling to recover from the bear market that began in early 2022 and saw the price of the coin nearly cut in half from its 2021 highs.

After several attempts to break above the $90 to $95 area, Litecoin finally managed to do so last week as the price rallied noticeably from the lows around the $70 level.

However, this rally already seems to be running out of steam as the price is now retreating after it tagged an order block around the $91 to $95 area that previously pushed the price much lower.

As the price retests this key area, traders should be careful as a strong reversal would indicate that this may have just been a bear market rally and not a full-blown recovery. At this point, the odds of a push toward the $100 level seem quite low unless the price can move above this order block. This would prove that there is significant support from buyers to push the price higher.

Looking at a lower time frame, we can see that the price action has drawn liquidity two times already from this OB and retreated in both instances. This means that selling pressure at this level is still quite strong.

Chart: TradingView

Although bulls have struggled to keep the downtrend contained, there was a change of character in the price action in the hourly chart as the price broke below its previous low after it failed to make a higher high.

At this point, Litecoin’s outlook is bearish and a retest of the 21-day EMA seems imminent, meaning a 5.6% downside potential from current levels.