The Litecoin (LTCUSD) price continues moving in a narrow range on Tuesday, consolidating the decline started on April 30th.
The short-term Elliott wave picture unveiled in the 4-hour chart exposes the progress of the incomplete corrective sequence that LTCUSD realizes since late April when the cryptocurrency found sellers at 50.736.
On March 13th, Litecoin began to develop an upward sequence that looks like an expanding leading diagonal pattern from the lowest level of the year at level 24.850. The bounce-off structural series boosted LTCUSD into five overlapped waves of Minuette degree labeled in blue until the level 50.736, reached on April 30th.
Once reached the April's high at 50.736 and completed the upward fie-wave sequence, Litecoin developed wave ((i)) or ((a)) of Minute degree identified in black. After this completion, LTCUSD started to experience a retracement against the previous move.
Until now, the cryptocurrency pair LTCUSD completed two segments of Minuette degree corresponding to waves (a) and (b) identified in blue. Currently, Litecoin advances in a narrow range confirmed by the RSI oscillator. On the previous chart, we observe that the tight ascending channel converges with the descending channel of the corrective structure in progress.
According to the Elliott wave theory, LTCUSD should develop a new decline corresponding to wave (c) in blue. At the same time, we distinguish on the RSI that the oscillator seems to find resistance below level 60, which suggests that the bearish bias remains.
In consequence, we expect a new decline for the following trading sessions corresponding to wave (c) of Minuette degree labeled in blue. The completion of this corrective formation will complete wave ((ii)) or ((b)) of Minute degree identified in black. With this finalization, and following the wave principle, Litecoin should start to develop a wave ((iii)) or ((c)) in black, which according to the Elliott wave theory, should contain five internal segments of Minuette degree.
In conclusion, our preferred positioning for Litecoin remains on the bearish side until the wave (c) completion. At the same time, for the mid-term, we will maintain the attention to its third bearish move completion, expecting to join the next rally corresponding to wave ((iii)) or ((c)).