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Meanwhile, we can see that the price has been retreating today 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 for Litecoin 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.
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.
Hence, Litecoin’s outlook is bearish and a retest of the 21-day EMA seems imminent at this point, meaning a 5.6% downside potential from current levels.
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