The price of silver has experienced a dramatic 48% crash following a parabolic rally, wiping out a significant portion of its recent gains. The sharp decline, observed on the 4-hour chart, was characterized as a "blow-off top" labeled wave number 5, leading to a highly volatile consolidation phase. The sell-off erased nearly half of the parabolic climb in just a few days, with trading marked by long upper wicks and wide candles, indicating unstable conditions driven by profit-taking and forced selling.
Simultaneously, the iShares Silver Trust (SLV) is compressing between key support and resistance levels. The fund, trading around $67.73 after a 1.15% drop, is squeezed between support at $67 and resistance at $72. It was rejected at a recent peak of $75.75, representing a 10-11% pullback. Repeated unsuccessful attempts to reclaim the $70-$72 zone affirm near-term resistance, with any decisive break below $67 potentially opening the path to $63-$65.
The broader catalyst for the precious metals sell-off is linked to a seismic shift in global financial expectations. Analyst Nonzee attributes a rapid $3.2 trillion liquidation within a single hour to reports that Russia may pivot back towards using the US dollar, potentially locking in a "generational economic alliance." This narrative reversal undermines the previous "de-dollarization" trade that had supported rising gold and silver prices. Renewed interest in dollar-based settlement could redirect institutional and central bank liquidity away from bullion and back into currency reserves.
A significant development alongside this volatility is the emergence of fully on-chain silver trading. On the Hyperliquid platform, silver can now be traded with no-KYC access, instant execution, and availability during weekends—a major change from traditional TradFi metals platforms. This provides traders with unprecedented flexibility in the precious metals market.
The price action reflects a rapid repricing of global financial assumptions. While gold fell from above $5,000 to around $4,800, silver has shown weaker recovery, still trading under visible pressure. This divergence may signal broader economic caution, as silver carries both monetary and industrial characteristics. The current phase is viewed as a transition where old macro assumptions fade and new structures begin to form, with volatility expected near such turning points.
