The Core Lithium Ltd (ASX: CXO) share price has been sold off this month.
As things stand, the lithium miner's shares are on course to record a 15% decline in June.
This means its shares are now down 52% since hitting a 52-week high of $1.88.
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What's going on with the Core Lithium share price this month?
It has been a very quiet month for Core Lithium. In fact, there was not a single announcement out of the miner in June.
This lack of positive news flow could be partly to blame for the weakness in the Core Lithium share price. Particularly for a company that most brokers believe is severely overvalued. With nothing to prop up the share price, it's not hard to see why it was on a downward trajectory.
In addition, short sellers continue to target the company for the same reason. And what a lot of short sellers!
The most recent data out of ASIC shows that Core Lithium is the third most shorted ASX share with approximately 9.3% of its shares held short.
That equates to almost 172.3 million shares with a value of approximately $155 million. That's a lot of smart money betting on the Core Lithium share price falling from current levels. Clearly, they are not messing around.
But how far could they fall?
The team at Citi is arguably the most bearish broker when it comes to Core Lithium.
Its analysts currently have a sell rating and 75 cents price target on its shares. This implies a potential downside of approximately 17% for investors from current levels over the next 12 months.
Food for thought for shareholders.
