Silver has experienced a sharp decline, falling more than 40% from its all-time highs reached back in January. This move didn’t come entirely as a surprise, as a deeper retracement was always on the table following the massive rally of over 300% from the April 2025 swing lows. Such extended bullish runs are often followed by broader corrective phases, and current price action appears to reflect exactly that.
On the lower time frame, particularly the 4-hour chart, the initial leg down stands out as a clear impulsive move. This is an important signal, as it suggests that the decline from the all-time highs is not yet complete and is likely part of a larger corrective structure—potentially a higher-degree wave four.
However, recent price action adds complexity to the outlook. The rebound toward the 78 level has created overlap with the previous wave A swing low, which weakens the case for a simple correction and instead points toward a more complex pattern. At this stage, a wave B running triangle scenario appears to be a strong candidate.
Following the recent slowdown during wave (D), silver may now be preparing for another push higher within the range, targeting the 78–80 resistance zone as part of wave (E). This would complete the triangle structure before a potential bearish breakout resumes the broader corrective trend.
That said, traders should remain flexible. If price breaks above the upper boundary with strength, the structure could evolve into a larger corrective wave (C), opening the door for a move toward the 90 resistance area instead.
Overall, silver remains in a corrective phase, with both short-term and higher time frame structures suggesting that volatility is likely to persist before a clearer directional move emerges.
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