Prices of lithium are leveling off following one of the steepest slopes in the history of the commodity market. The market has now been trading around critical levels of recovery.
The recent chart data is characterized by a consolidation, whereas the long-term trends are characterized by a gradual improvement following a severe correction.
Lithium Price Rebounds Around $20,000 On A Sharp Downward Trend
Trading Economics shows that lithium carbonate buys around $19,965 per ton following a good recovery period. This is after a long downward trend to a low of the cycle of $8,333 per ton. During the base, the market fluctuated between the range of $8,300 to $12,500 per ton over several months.
Later, the prices surged above the resistance level of $13,889 per ton, and this was followed by a sharp increase in the prices. This explosion drove lithium to a high close to the range of $25,000/t, which was a gain in excess of $16,600/t. The action validated fresh acquisition enthusiasm and enhanced the charge framework.
Trading Economics indicates lithium carbonate struck back to approximately $19,965/t in response to falling to almost $8,333/t on Feb/16/2026
After reaching $25,000/t, lithium corrected around $18,750/t, where support emerged. The price has since recovered to be towards the height of the breakout at about $19,965 per ton.
There is also short-term resistance that is close to $25,000/t and support at $18,750/t, indicating when the levels are held higher, it preserves the larger recovery structure.
More Than $70,000/T Wiped Out Due to Lithium Boom And Crash
Additionally, Fastmarkets data indicates that lithium had undergone a drastic boom and correction cycle. Prices increased, starting at approximately $7,000 per ton in 2020, and went above $80,000 per ton. This rally happened at the end of 2022 and then at the beginning of 2023 as a result of shortages in supplies.
The same was the case with the China lithium carbonate market. The prices were approximately brought to around $83,000 per ton, then dropped drastically in the correction. The drop dropped the prices to an average of around $9700/t, which was an 85% reduction.
According to Fastmarkets data, lithium carbonate has soared to high above $80,000/t and then gone down to almost $10,000/t and currently stands between $9,700 and $12,500/t on Feb/16/2026.
This correction wiped the markets off close to $70,000/t in market value during the decline phase. Quantum supply and poor demand were another cause of the long-term downwards trend. An increase in production also created pressure in the process of correction.
In the recent past, lithium made between $9,700 and $12,500/t in the form of a base structure. This range would indicate that there is less selling pressure following the crash. A stabilization is a sign of a market that is in a recovery stage.
Lithium Stocks Stablizes Near $313 After Correction
On the other hand, lithium-related stocks on TradingView data indicate that lithium stocks are trading around $313.48 after undergoing the volatile correction period. The prices were earlier on the rise, from $255 to approximately $370, which is a gain of about $115. This action was a positive revival time.
On achieving the correction after the level of $370, the corrective action was toward the support level of $300 to $310. This is now serving as an important short-term support area. The existing price is a little above this support area.
Lithium-related stocks were trading near the price of over $313 on TradingView, having dropped from a high of over $370 on Feb/16/2026.
Indicators of movement are of mixed but improving signs. MACD is still negative, close to -7.37, and the signal line is close to -9.14. The histogram became positive at about 1.77, which indicated weak selling power.
RSI is trading at around 45.18, and the moving average has a value of around 38.88. This indicates that there is recovery, however, below the neutral levels. The resistance is close to the level of $340, and then there is a resistance around the level of $370.
Support of the market is tight at around $300, and lower support is at $280. The existing price of between $300 and $313 in the area is likely to define the future direction of the trend.
Lithium still remains stabilized following its historic crash and recovery stage. The market is still lower than it used to be but gradually is getting better. As the recovery progresses, traders keep checking on the levels of support and resistance.