Silver extended its decline on Wednesday, with XAGUSD sliding to around $57.17 after a failed consolidation attempt that tested resistance near $59.50. The bearish move was perfectly captured by analyst David, who executed a short setup with a 10-to-one risk/reward ratio. According to the 30-minute chart on XAGUSDT perpetual, David’s short was initiated at approximately $59.574 after bulls were repeatedly rejected at resistance around $59.823. Price broke below the critical support at $59.20, triggering an aggressive drop through $58.80 and then $58.10, before a bearish engulfing candle drove the pair to the $57.40 area. The trade reached its downside target near $57.06, delivering a full 10R reward.
Technical indicators on the daily XAGUSDT perpetual chart show the metal trading at $57.17, up 2.24% on the day, but the broader picture remains bearish. The daily RSI stands at 42.72, still below the neutral 50 level, while the MACD line at -0.87 and signal line at -1.22, though the histogram shows easing bearish momentum. The sequence of lower highs and lower lows across all sessions continues to pressure the price.
Adding to the bearish outlook, popular analyst Alex Mason, known for calling every major market top and bottom over the past 15 years, issued a stark prediction: silver will lose the $57 support and reprice significantly lower. Mason’s hand-drawn weekly chart outlines a clear breakdown path from $57 to $51, then $45, and ultimately $39 by late 2026. He views the prior parabolic rally to above $120 in early 2026 as overextended, necessitating a multi-leg decline to reset before a strong V-shaped recovery can take hold. Mason’s track record includes accurately calling tops in gold, silver, oil, and even Bitcoin’s crash, lending weight to his forecast.
The immediate catalyst for the precious metals sell-off is the Federal Reserve meeting underway today. While no rate hike is expected this time, markets are increasingly nervous about the path forward. Just two weeks ago, the probability of a future rate hike was 10%; it has now jumped to 36–40%. Higher borrowing costs would dampen industrial demand for silver in electronics and solar panels, directly pressuring prices. Additionally, easing geopolitical tensions have sent oil prices sharply lower—Brent crude dropped more than 15% to around $86—further reducing inflationary hedges and contributing to the decline in gold and silver.
Traders now watch the $57 level intently. A confirmed break below could accelerate the move toward Mason’s targets, with asymmetric risk-reward favoring further downside in the immediate term. The long-term recovery scenario remains compelling only after the re-pricing is fully exhausted.
