The fall was due to the changing risk sentiment following months of aggressive upside, and not the abrupt worsening of the underlying demand.The fall was due to the changing risk sentiment following months of aggressive upside, and not the abrupt worsening of the underlying demand.

Lithium Prices Retreat Toward $23,090 per Tonne

3 min read

Lithium prices faced renewed pressure on February 1–2 as a broad pullback swept through commodities, echoing similar cooling moves seen in gold and silver.

Data Shows Momentum Cooling After Steep Rally

According to Trading Economics, lithium carbonate prices fell to $23,090/t, down 4.46% on the day, marking one of the sharpest daily declines in recent weeks. Despite the drop, the metal remains up 35.44% on the month and 106.70% year-on-year, highlighting how elevated current levels remain.

According to the long-term chart, there is a strong recovery at mid-2025 in the lows of around $8,630/t, and then a steep rise up to the early period of 2026. Such a run-up is similar to what has been happening in silver of late, where soaring momentum runs eventually succumbed to abrupt volatility resets.

The annual recovery with a sudden pullback on a day-to-day basis is an indicator of high volatility after a lengthy upward surge in the prices of lithium. Statistics as of 2026 February 2, Charts by Trading Economics .

The more general commodities dashboard validates the change. Platinum fell 3.00% on the day, and gold and silver traded at 3.66% and 3.35%, respectively. Synchronized selloff indicates that it is a macro-driven repositioning, and not a weakness of the asset in question.

During this stage, materials that are related to batteries are being traded more as financial instruments rather than as industrial supplies. Just like the recent surge-and-reset cycle of silver, the extreme positioning exposed prices to vulnerability on the decline of risk appetite.

Forced Deleveraging Intraday Breakdown.

On February 2, 2026, analyst Carl Capolingua described the action as a broader speculative unwind. In his chart, it is observed that the futures failed around the area of $21,990 per tonne and then fell to the area of $21,010/t, selling into lower demand areas.

Price stabilized, momentarily, in the range of $20,450/t, but was unable to do so due to limited dip-buying; the slide was able to move further to the range of $20,140/t. High volume and open interest indicate forced deleveraging and not systematic profit-taking.

Lithium futures disintegrated due to a speculative supply area, and the liquidation pressure forced the price to lower supply on to the deeper demand areas in the context of a macro risk-off shift. Chart by Carl Capolingua Via X, Feb 2, 2026)

Underlying fundamentals remain supportive. Australian producers have reported strong realized pricing, with one major miner citing a 57% increase in average prices and January spot levels surging from roughly $600 per tonne in mid-2025 to near $2,500. Policy support in China and EV demand continue to underpin the longer-term outlook.

Nevertheless, sentiment-driven markets seldom run along straight lines, just as they can be observed in precious metals. The volatility is bound to continue even after the demand expectations are stable until prices regain recent breakdown levels.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Solana Price Plummets: SOL Crashes Below $90 in Stunning Market Reversal

Solana Price Plummets: SOL Crashes Below $90 in Stunning Market Reversal

BitcoinWorld Solana Price Plummets: SOL Crashes Below $90 in Stunning Market Reversal In a dramatic shift for one of cryptocurrency’s leading networks, Solana (
Share
bitcoinworld2026/02/05 06:45
New Developments Could Push Price Toward $0.40

New Developments Could Push Price Toward $0.40

The post New Developments Could Push Price Toward $0.40 appeared on BitcoinEthereumNews.com. Pi Network has been one of the most anticipated projects in the crypto space, with millions of users mining its tokens via mobile devices long before a tradable price was established. Over the past few years, the project has carefully balanced its testnet development with community engagement, creating one of the largest ecosystems by user count despite not being fully listed on major exchanges. As 2025 advances, new updates are pushing Pi Network closer to mainstream adoption. Analysts suggest these developments could serve as the catalyst that finally drives Pi’s price toward the $0.40 level, a milestone that would validate years of community patience. In this context, investors are watching closely to see if Pi Network can turn its massive user base into sustainable value. Alongside this story, presale projects like MAGACOIN FINANCE are also drawing attention as speculative plays offering high asymmetry before exchange listings. Pi Network’s unique approach Unlike most cryptocurrencies, Pi Network built its community first, launching a mobile mining app that allowed millions of users to accumulate tokens without high-end hardware. This grassroots approach created unprecedented scale, with more than 50 million pioneers participating globally. The challenge, however, has always been translating this scale into economic value. By focusing on KYC verification, ecosystem apps, and gradual migration toward mainnet, the team has aimed to avoid the pitfalls of rushed launches. Analysts argue that this deliberate approach is what could allow Pi Network to sustain value once it achieves full exchange listings. Recent developments In 2025, Pi Network rolled out several updates that have sparked renewed optimism. Expanded KYC processes have accelerated, allowing more users to validate their holdings and prepare for migration. At the same time, Pi App Platform has gained traction, with developers launching decentralized apps directly into the Pi ecosystem. These apps range from…
Share
BitcoinEthereumNews2025/09/18 14:15
The $1.7 Billion Masterstroke Reshaping Tech’s Foundation

The $1.7 Billion Masterstroke Reshaping Tech’s Foundation

The post The $1.7 Billion Masterstroke Reshaping Tech’s Foundation appeared on BitcoinEthereumNews.com. A16z AI Infrastructure Fund: The $1.7 Billion Masterstroke
Share
BitcoinEthereumNews2026/02/05 06:36