Key highlights:
- Analyst says the silver price could still slide toward $64 if key support levels give way.
- The chart shows silver trying to build a rounded base, with $80 now acting as the level traders are watching most closely.
- Silver recently moved back above its 50-day moving average, but the overall structure still looks fragile.
Silver is in a key position on the chart, and traders are awaiting its next move. After a strong move in the prior part of the cycle and a significant correction, silver is having difficulty stabilizing around the $80 area. The key issue is whether this is a real support level or if a further decline is in store.
Market analyst Oren Elbaz recently highlighted this situation, outlining two possible paths. One scenario shows the Silver price forming a rounded base that could evolve into a loose cup-and-handle pattern. The other warns that a drop below $64 would signal a deeper correction that could last into the summer.
A rounded base may be forming
The chart shows that the Silver price took a sharp drop after hitting a local peak earlier this year, sliding down toward the mid-$60 region. The move looked like a classic capitulation moment, where selling pressure accelerated before buyers finally stepped in and slowed the decline.
Since then, silver hasn’t bounced back in a quick v-shaped recovery. Instead, it’s been slowly carving out a rounded base with a series of higher lows. That gradual structure, highlighted by the large blue curve on the chart, indicates the market has been building support over time.
After briefly climbing back toward the $90 region, the Silver price has now pulled back toward the $80 area, which traders are watching closely as the possible right side of that formation.
Key levels that could decide silver’s next move
At the moment, the key level for traders is the $80 level. If silver can hold above this level, create a higher low, then the chart could potentially start taking on the characteristics of a loose cup and handle formation.
That could set up another move toward the mid-$90 region, with the $100 level potentially coming into view. Oren Elbaz called the formation a bit “wonky,” noting that silver often forms imperfect patterns before making strong moves.
The downside scenario appears if the Silver price loses support and drops below $64. That would break the base structure and point to a deeper correction that could stretch into the summer. One positive sign is that silver has moved above its 50-day moving average, indicating that momentum may be slowing down.
What could happen next for the Silver price
Right now, the Silver price sits in a situation where two very different outcomes are possible. If the market continues to hold above the $80 region, the rounded base structure could remain intact and eventually lead to another attempt at the highs.
On the other hand, a drop below key support levels would point to a longer correction. For the moment, silver appears to be stabilizing after a volatile stretch.
CoinCodex’s 1-month Silver price forecast places the metal near $78.28, which points to a relatively neutral outlook and indicates silver may continue hovering around current levels unless stronger momentum appears.
Source: https://coincodex.com/article/82665/silver-price-prediction-analyst-warns-a-drop-to-64-is-still-possible/
