Renowned analyst Dr. Potassium took to social platform X to highlight a long lower wick forming near silver's crucial $70 support level, sending a clear signal to traders: this is not a time for panic, but for conviction. He believes that despite short-term market volatility, the inflation trade logic driving silver's ascent will ultimately return.
Silver's Weekly Chart Reveals Market Landscape
Potassium's shared weekly chart illustrates a significant upward journey for silver since its low of $11.50 in November 2020. The price approached $30 in 2021, broke past $40 in 2024, and then surged to over $120 in 2025, marking a historic high. This undoubtedly represents an epic rally in the precious metals market.
However, rapid ascents are often accompanied by rapid pullbacks. Since its peak, silver has fallen over 40% in just a few weeks, reaching a low of approximately $70.
Notably, buying pressure emerged at the critical $70 support level. The long lower wick on the weekly chart clearly indicates that while sellers attempted to push prices lower, buyers stepped in to reclaim some ground. This price action is significant, demonstrating that sellers failed to sustain lower prices at a major support zone, and buyers found value in this area. While this does not guarantee a bottom, it does show that the level is being defended.
The Significance of the $70 Support Level
The $70 support zone is not arbitrary. This level previously served as a critical area where silver prices consolidated for several weeks in mid-2025, building a base platform before ultimately breaking out upwards. Historically, areas where prices have consolidated often become significant support levels during pullbacks, as traders who missed the initial move seek entry opportunities.
Dr. Potassium identifies this as key support, and the appearance of a long lower wick confirms the presence of buyers. Whether this pullback has concluded hinges on silver's ability to hold the $70 level and build upward momentum from here.
The Uniqueness of This Pullback
The severity of this pullback has unsettled many investors. A 40% drop in just a few weeks is enough to test an investor's resolve and force out the less committed. Dr. Potassium interprets this not as a time for fear, but for sticking to one's convictions.
He believes the fundamental basis for this conviction lies in the macroeconomic landscape. Inflationary concerns have not dissipated, central bank monetary policy remains loose by historical standards, and geopolitical tensions continue to support demand for safe-haven assets. These factors driving silver's surge to $120 have not reversed; they have merely been overshadowed by short-term market noise. As Dr. Potassium puts it, market sentiment is currently highly volatile, but opportunities remain for those who can look past the noise and see the bigger picture.