BTC once dropped from $33 to $3 and the general atmosphere at the time was one of hopelessness and despair. However, this turned out to be one of many bubbles and the BTC price rebounded after every crash. LTC has dropped from $48 to $8 and the general atmosphere right now seems to be one of hopelessness and despair, so it's possible that Litcoin could follow the same path and this could simply be one of many bubbles/crashes to follow. The LTC economy is in its nascent stages - just like Bitcoin was in 2011.

This is just one possibility though. It's also possible that Litecoin will never rebound at all. It could just keep on falling and falling and never surpass its ATH.