Litecoin (LTC) declined 13.42% over the past 24 hours to $65.01, extending the cryptocurrency's negative momentum after a brutal week. LTC has now dropped 21.70% over the last 7 days, underperforming top coins like Bitcoin and Ethereum.

With a market capitalization of $4.77 billion, Litecoin remains one of the most widely-held and traded crypto assets. For investors and traders evaluating Litecoin's outlook, here are the key takeaways from its latest price action:

Selling Pressure Mounting in the Short-Term

Litecoin saw over $858 million worth of trading volume during the past 24 hours. This high level of activity relative to its market cap suggests substantial liquidation is taking place.

The selloff also steepened in the past hour, with LTC dropping a further 0.23%. This shows selling pressure is accelerating in the near-term, rather than letting up. Until volumes and volatility cool off, more downside looks likely.

However, the significant intraday plunge indicates investor capitulation could be approaching. Oversold readings on the daily RSI support this view.

Long-Term Support Around $50 in Focus

Zooming out to the weekly chart, Litecoin remains locked in a painful long-term downtrend. After peaking above $400 last May, LTC has suffered a staggering 85% drawdown.

Each rally attempt has stalled out around the 21-week moving average, confirming sellers remain in full control. Litecoin hasn't closed above this key MA since May 2022.

Major multi-year support sits around the $50 level, which could be tested soon if negative momentum persists. This area also lines up with the 0.618 Fib retracement.

Why Accumulating LTC Looks Attractive Here

Despite Litecoin's nearly 90% drawdown from its all-time high, the case for accumulating at current levels remains compelling:

• Oversold RSI readings indicate capitulation could be close
• At 90% off highs, LTC offers ‘generational buying opportunity’ if long-term price target reaches $1,000+
• Deeply undervalued relative to pre-2017 bull run prices
• High liquidity makes LTC appealing for active traders
• Future improvements to network usage and transactions could boost appeal

For investors with a time horizon beyond the next several months, buying zones rarely look as attractive as they do now. Once the bear market ends, Litecoin could significantly outperform Bitcoin.

Near-Term Litecoin Prediction

Technically, my near-term prediction is for the selloff to potentially accelerate in the coming days and weeks:

• Failure to hold the 200-day MA around $75 opens the door to a sharp move lower. The $50 support zone is the next major line in the sand.
• Oversold conditions make a brief corrective bounce possible up to perhaps $75 again. But LTC likely lacks bullish catalysts to drive a sustained reversal yet.
• A climactic capitulation towards $50 could unfold before any meaningful upside develops, likely as part of a broader crypto recovery.

Without a major improvement in market conditions, Litecoin will remain stuck in its painful downtrend. But current prices present a compelling opportunity for sizeable upside in the years ahead.

Is Litecoin a Good Long-Term Investment?

Although it lacks the mainstream recognition of Bitcoin, Litecoin enjoys some unique advantages that make it an intriguing option for crypto investors:

• High liquidity and long operating history dating back to 2011
• Network upgrades like the MimbleWimble Extension Block offer enhanced privacy and scalability
• Integration of the Lightning Network and other features allow fast/cheap payments
• Strict 84 million LTC supply cap with disinflationary block rewards

However, Litecoin does still face challenges:

• Struggled to differentiate itself enough from Bitcoin to drive mainstream adoption
• Minimal marketing presence and brand awareness hinder investor appeal
• Concerns about long-term relevance as Ethereum grabs DeFi/web3 developer mindshare

Overall, investors comfortable with Litecoin's risks and volatility could still see substantial long-term upside from current lows. But restraint around position sizing is prudent.

Will Litecoin Revisit All-Time Highs?

Litecoin hit a record high of $412 in May 2021 before declining over 90%. With the right catalysts, revisiting all-time highs is certainly possible:

• Renewed crypto bull market in 2024/2025 spurs new retail and institutional interest
• Improvements in usability and transaction fees boost real-world utility
• LTC integrates decisively into DeFi, NFTs, metaverse, and web3 ecosystems
• Major global merchants begin accepting LTC as payment, providing catalyst for adoption

However, some challenges remain in Litecoin recapturing prior highs:

• Continued selling pressure from long-term holders who bought lower
• Failure to differentiate from Bitcoin limits investor appeal during bull markets
• Network congestion or tech limitations prevent widespread adoption

Despite the hurdles, Litecoin retaining cult-like appeal with elements of the crypto community could be enough to drive it back toward $400+ when the next euphoric market arrives. But likely not without volatility along the way.