Silver (XAGUSD) Price Forecast: Exhaustion Signals Pullback After Record High

Author: Bruce Powers

Published: December 29, 2025

Overview

The price of silver recently reached a record high of $84.03, but has since shown signs of buyer exhaustion, leading to a significant price reversal. This article analyzes the technical indicators and market conditions that suggest a potential corrective phase for silver prices.

Key Points

• Silver peaked at $84.03 before experiencing a sharp decline, closing below the previous low of $71.85, indicating a bearish engulfing pattern.
• The price drop below $70.52 signals a potential test of support levels, particularly the 10-day moving average and an uptrend line, currently at $69.18.
• The Relative Strength Index (RSI) reached an overbought level of 87.43, the highest since 2020, indicating that the market may be overextended.

Support and Resistance Levels

The 10-day moving average and the uptrend line are critical support levels for silver. A break below these levels could indicate a failure of the short-term bullish trend. The article emphasizes that the convergence of these indicators enhances their significance as support.

Market Dynamics

Silver's recent price surge of 54.9% since breaking out from $54.24 indicates strong bullish momentum, but the recent bearish action suggests that this momentum may be waning. The article notes that the market is likely to experience either a sideways correction or a deeper pullback.

Long-Term Indicators

Two long-term resistance indicators are identified at $83.40 and $84.00. The bearish reaction following the peak at $84.03 suggests that the market may be due for a correction. The article highlights that these resistance levels are based on Fibonacci extensions and patterns, indicating that the recent price action is unsustainable.

Conclusion

In summary, the silver market is currently facing signs of exhaustion after reaching record highs. Key support levels are being tested, and the potential for a corrective phase is high. Traders should monitor these indicators closely to gauge future price movements.