Silver prices have entered a period of intense volatility after a strong start to the year, with the market at a crucial juncture. After previously testing highs around $110, silver has experienced a significant pullback and is currently retesting the $78 to $79 range, which has become a key support zone in the battle between bulls and bears.
From a technical perspective, silver prices have formed a series of progressively lower highs since the peak, indicating that buying power is insufficient to dominate the trend. Although there have been occasional rallies, they have consistently met strong resistance in the $89.50 to $91.50 range. This area has been identified by many traders as a significant supply zone, with a large number of sell orders stacked up, causing repeated failures in rally attempts.
At the same time, the U.S. Dollar Index continues to strengthen, approaching the 99 mark, putting pressure on precious metals priced in dollars. A stronger dollar reduces the attractiveness of holding silver for overseas investors, coupled with geopolitical tensions—especially the uncertainty surrounding U.S.-Israeli-Iranian relations—further exacerbating volatility in market risk aversion, prompting rapid shifts of funds between cash, commodities, and safe-haven assets.
Chart analysis indicates that if silver can hold the $78 support level, it could form a short-term bottom and test the previous rally highs of $85 to $86. If this area is breached, the next target would be the liquidity-rich zone near $90, re-challenging the key resistance at $91.50.
Silver Price at Critical Support: $78 Breach Could Target $72, Technicals Reveal Major Turning Point
Silver price approaches key support at $78; a break could lead to a test of $72. This article details the technical structure, dollar pressure, and bull-bear battle, revealing key future directions for silver prices.