Silver (XAG/USD) is trading near $57.85 after a sharp rejection from the $60–$61 zone, where a descending trendline and Fibonacci resistance aligned. Analyst More Crypto Online highlights a potential wave 4 triangle formation, warning that as long as silver remains below $61.40, another decline toward $55.40 and then $51 is likely. A break above would shift focus to $64.16–$69.65, though rallies so far have been corrective.
The recent bounce from around $55 to $60 displayed choppy, overlapping candles typical of an ABC correction rather than impulsive buying. The dominant bearish structure—lower highs since early July—remains intact. The US Dollar Index (DXY) slipped on the day, offering temporary support to silver by making dollar-priced commodities cheaper for foreign buyers, yet yield-driven headwinds from Federal Reserve policy expectations continue to cap gains.
Technically, the $51–$55 zone is seen as a potential major long-term floor, but the analyst suggests the bottom has not yet formed. A decisive move below $55 would reinforce the bearish case, while a sustained close above the descending trendline and $62–$63 would invalidate the immediate bearish wave count.
For crypto markets, precious metals often serve as macro barometers. A prolonged silver decline could signal strengthening dollar and tighter liquidity—typically negative for risk assets like Bitcoin and altcoins. Conversely, a weaker dollar and falling real yields, if silver bottoms, may create a tailwind for the broader digital asset space.
