Media reports indicate that silver has just recorded its sharpest price decline since 1980.

What stands out is the absence of a single, clear fundamental trigger capable of fully explaining the dramatic fall from the 29 January peak near $120 to current levels around $72 — a drop of roughly 40%. The broader geopolitical environment remains highly strained, with ongoing risks linked to Iran, Greenland, Ukraine and other regions.

Commentators have pointed to widespread forced liquidations of long positions, a narrative that closely mirrors the conclusions we outlined in our article “Silver Breaks Above $115 for the First Time Ever”, published five days ago.

In that analysis, we:
 → reaffirmed the relevance of the dominant rising channel and drew attention to a spike in volatility during the A→B move from the channel’s upper boundary;
 → argued that “smart money” was likely using heightened retail participation to exit long positions after an exceptional rally of more than 200% over the past six months — a classic distribution phase in Wyckoff terminology.

Subsequent price action has validated this view through:
 → a brief false breakout above the A high, consistent with a UTAD (Upthrust After Distribution) pattern;
 → a rapid intensification of selling pressure. As a result, XAG/USD decisively broke below both the channel’s median and its lower boundary around the turn of the week.

From a Wyckoff perspective, silver’s behaviour suggests that:
 → institutional players have completed the distribution of long exposure and shifted decisively to market selling;
 → retail traders’ positions are being unwound on a large scale, further accelerating the decline.

Put simply, the market has transitioned from Distribution into the Mark-Down phase. The speed and magnitude of recent price moves — which make rational decision-making particularly challenging — reinforce this conclusion.

As a result, even if silver attempts a technical rebound from deeply oversold conditions, any upside is likely to encounter strong resistance in the $87.5–95 region. This zone previously marked an area of pronounced bearish dominance during the breakdown of the long-term uptrend channel.

FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot (additional fees may apply). Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!

The FXOpen App is a dedicated mobile application designed to give traders full control of their accounts anytime, anywhere.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.