Litecoin falls beneath a bullish order block, could $40 be next target

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.

Just a week ago, Litecoin [LTC] rallied to the $61 level but faced rejection there. This was a bearish development, especially for long-term investors. The market structure continued to remain bearish, and the psychological $50 level has been defended in the past few days. However, selling pressure began to climb once more.

Source: LTC/USDT on TradingView

In May, LTC formed a range from $61 to $74 (white). One week into June, the lows of this range failed to hold. The wave of intense selling saw Litecoin drop as far south as $40.2. In the following weeks, the price saw a rally back to the $61 area.

The Fibonacci retracement levels (yellow) plotted showed the $61 mark to be the 61.8% retracement level of the move from $74 to $40.3.

Moreover, the $61 area was also the low of the range formed in May. The confluence of these two resistances was strong, and LTC faced rejection from the $61 zone.

Source: LTC/USDT on TradingView

The rejection from the $61 area was expected to find some support in the $51-$52 area (cyan box). This was a zone of demand, and it also had a bullish order block on the four-hour chart. Moreover, this zone was just above the longer-term horizontal support level at $50.4.

Therefore, we have confluence once more between the bullish order block and a horizontal support level. Yet, the price bounce was only a weak one from this zone.

On two occasions in the past few days, a bounce was witnessed. Each of the bounces was unable to close a trading session above $54. At the time of writing, the price appeared to slip below both the $50.4 support level as well as the