I don't think Litecoin will be crashing down to worthlessness anytime soon -- too many people have too much invested into it at this point. That said, its value has indeed been on the decline for the last few weeks. I believe this is mainly related to the Gox news or lack thereof. As I recall, Litecoin's rise to its ~$5+ peak coincided with both Bitcoin's all-time high and news that Gox was planning to implement Litecoin trading. As Bitcoin's price crashed down from the bubble, so too did Litecoin's. Litecoin still enjoyed some benefit from the Gox news, however. The initial news from Gox seemed to imply that Litecoin trading would be implemented within weeks (which many expected would send LTC shooting to $10+). That was months ago and in the meantime Gox has stated that they have put plans to add more coins to their exchange on the back burner due to more pressing issues. In the last few weeks, what with all of the delays in adding Litecoin trading and Gox's legal troubles I think people have become disillusioned with the prospect of Litecoin on Gox. For this reason some people have chosen to divest a bit. Nonetheless, I don't think this is a trend that will continue indefinitely.
If you're mining for immediate sale, Litecoin may not be the best coin to mine as there are other scrypt alts (and even Bitcoin!) that are currently performing better at any given time profit-wise. If you're in it for the longer run, I still believe there may be a brighter future for Litecoin. I feel quite strongly that we may see $5+ LTC again in the future but I don't know how long it'll take to get there. Anyways, this is all just my own opinion and speculation.
Whatever you choose to mine, I wish you well!