Saad Ullah
⬤ Silver went through a sharp and sudden decline on the one-hour chart, with XAG/USD dropping aggressively after a prolonged strength period. Price had been riding above the Ichimoku cloud for an extended stretch before momentum flipped abruptly. The selloff marked a clear shift in short-term conditions as silver broke decisively below the cloud and key technical levels, triggering a rapid downside move.
⬤ The severity of the decline reflected a market that had become stretched and vulnerable rather than transitioning into an orderly bearish trend. The chart shows XAG/USD slicing through both the Tenkan and Kijun lines with barely any reaction, followed by a series of large bearish candles and weak rebounds. This behavior looks like forced liquidation, where positions unwind quickly after support levels fail, rather than gradual, controlled selling.
⬤ Momentum indicators back up this view. Before the selloff, the relative strength index showed bearish divergence, signaling fading momentum despite higher prices. After the flush, RSI dropped into deeply oversold territory on the hourly timeframe, pointing to elevated stress and late-stage capitulation. Price has tried to rebound since then, but the structure stays choppy and unstable. Silver hasn't reclaimed the Ichimoku cloud yet, suggesting the current bounce lacks confirmation and remains technically fragile.
⬤ This move matters for the silver market because it highlights a shift from trend continuation to a consolidation and digestion phase. The sharp reset doesn't kill the broader silver narrative but confirms short-term excess has been cleared. With XAG/USD now rebuilding structure below key technical levels, volatility and uneven price action will likely stick around until stabilization kicks in. The recent flush shows how fast momentum-driven moves can unwind and puts focus on whether silver can normalize before setting its next sustained direction.
Saad Ullah
