According to the recent market data, it is argued that selling pressure is reduced and buyers are cautiously re-entering at key stages.
There were signs of stabilization in lithium prices after a long-term sell-off as the futures, spot pricing, and equity-linked ETFs increased in line.
Lithium Contracts Stabilize After Prolonged Fall
In a recent X post, analyst Juan Carlos Zuleta pointed out that the lithium carbonate prices in China came back in a small amount following nine consecutive days of falls. The futures markets recorded that front-month futures contracts were concentrated between $19,500 and $19,700 per tonne, with spot-aligned levels of around $19,550 per tonne. This was the initial stalemate in a continuing series of downside pressures.
Juan Carlos Zuleta points out in X a modest recovery of lithium carbonate, where the majority of the futures contracts have boasted and prices have stabilized at around 19,500/T.
The stabilization was represented in the futures curve. Profits were in the range of $600 to $900 per tonne, and a number of maturities have been brought to the level of $19,600 to $19,900/t. The general upward trend indicated the enhancement of the short-term mood.
Prices further into the curve came nearer, though not exceeding, the level of $20,000 per tonne. The level remains a psychological barrier. The observation of the analyst indicates that there is a sentiment reset as opposed to a proven trend shift.
The strength of futures and stability of spots indicate that the negative movement has been weakened. The price above $19,500 per tonne now seems to be the focal point of this positive outlook.
Base Formation The Trading Economics Data Indicates
As well, the price of lithium carbonate was trading higher than the day before, with an increase of $19,550 per tonne, or a day-to-day increase of 0.74%. This was following nine consecutive losses in a row. Even though technically, the rebound was small, it was still impressive.
The year-end price chart indicates that lithium was under a lot of pressure in the middle of the year. The price reached its lowest point of $8,000-$9,000 per tonne, and then it began increasing steadily. This momentum continued into late 2025, when the prices were above $26,000/t.
Trading Economics reveals that lithium carbonate rebounds to $19,550/T after nine days of a downward trend and initiates early price stability.
That rally was succeeded by a drastic correction. Prices fell back to the range of $19,000–$20,000, where the price is presently concentrated. The pullback reversed the initial progress but was not removed completely.
The recent price movement is an indication of consolidation as opposed to further decline. The support has established itself at approximately $19500/t and the resistance at approximately $20300-$20500/t. There are no new lows, which indicates the reduction of negative pressure.
Market-wise, the chart is an indication of base-building. The fact that the sentiment is stabilizing is supported by the alignment with positive futures pricing. Any upward decision in the long run beyond $20,000/t would give an indication of the restored strength.
LIT ETF Bounces Back; Momentum Reverts
On the other hand, improving conditions were also reflected in equity-linked lithium exposure. According to data at TradingView, Global X Lithium & Battery Tech ETF (LIT) has closed the session at $71.09, up 4.48%. Prices fell within the intraday range of $69.90 and $71.29.
It has recovered after a slight correction of highs close to $75.00. However, recent volatility notwithstanding, the price is above the medium-term rising movement. Buyers held the position of the $71.00-$72.00 area, which strengthened the overall structure.
Global X Lithium & Battery Tech ETF has reached $71.09, which speaks in favor of the fact that the mood in the sector of lithium and related batteries is getting better. Source: TradingView
The volume of trade was 786,070 shares, which means that it was actively traded. The indicators of momentum reflected conflicting results. The MACD histogram was still negative, indicating negative adding momentum, and the MACD line was also over zero.
The RSI (14) was close to $52.73, and it was relaxed compared to the previous overbought situations. The impression created by this reading is that of consolidation and not of weakness. The support is set at approximately $69.00 to $70.00, whereas the resistance is about $73.00 to $75.00.
On balance, the performance of the ETF is acceptable in line with spot and future data. Lithium-linked equities seem to be chewing over recent actions and still have an upward organization. The indicators of price movement in the markets indicate that the market has stalled its sell-off and is now considering the possibility of stabilization proceeding into a sustained recovery.
Source: https://bravenewcoin.com/insights/lithium-selloff-breaks-with-etfs-heading-a-recovery-around-19500-t
