Silver Climbs to $89-But Will It Snap to $79 or Soar to $101? Traders Beware!

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<a href="https://investment-policy.com/silver">Silver</a> Just Hit $89, But The Charts Are Hiding a Catch

Silver’s price hit $89 yesterday after a recent breakout on May 7, but technical indicators suggest it might briefly fall back to around $79 before potentially rising again.

As I’ve been tracking the market, metal prices are currently around $86.94 and seem to be moving within a clear upward channel. However, looking at the 4-hour charts, indicators like RSI and MACD suggest that the recent upward momentum might be losing steam.

Macro Forces Behind Silver’s Latest Move

The price of silver is influenced by a combination of factors – the overall economy, how much it’s used in industry, and limited availability – rather than just one thing. As we previously reported, strong demand and tight supply are continuing to support silver’s potential rise toward $100.

Alexander Potavin, analyst at Finam Group, recently shared his macro view with BeInCrypto.

Silver prices are affected by the overall economy, as well as specific factors like how much industry needs it, how much silver is available, and what investors think about interest rates. While lower interest rates can sometimes boost silver prices by encouraging economic growth, silver tends to be more sensitive to economic slowdowns and recessions.

His insights reveal that silver price jumps often happen when expectations for interest rates change or there are signs of increased industrial activity. Because of this, traders monitor both silver’s chart patterns and broader economic trends, especially around important Fibonacci levels, to make informed decisions.

Daily Chart Confirms Bullish Breakout at $89

On May 7th, silver’s price, when viewed on a daily chart, surpassed a downward-trending pattern known as a descending triangle. Following this breakout, the price quickly rose to around $89, reaching a key technical level called the 0.382 Fibonacci retracement.

The price hit its first major resistance level yesterday since February. The Relative Strength Index (RSI) is currently strong, near 70, suggesting the upward trend is likely to continue.

The BBWP indicator is currently showing high volatility, which often suggests a significant price move is coming soon.

There are now two possible paths forward. The price could fall back to around $79, which is a key support level, and then bounce back up. This would essentially recharge the upward trend. Alternatively, the price could continue higher without a significant drop.

If the price rises above $89, it could move towards the next resistance level around $101, which is based on a Fibonacci retracement.

Our analysis in early May identified a triangle pattern that suggested a potential price decrease. However, yesterday’s price movement broke out of that pattern, indicating an upward trend instead.

Four-Hour Chart Hints at a Near-Term Correction

Even though the price went up today, looking at a four-hour chart reveals a pattern. Since May 4th, the price has been moving within a consistent upward channel.

The price is currently near a support level, but hasn’t fallen below it yet. The 4-hour Relative Strength Index (RSI) fell below an upward trendline yesterday and is now showing neutral momentum.

The MACD histogram is now showing negative values and decreasing, which indicates that short-term buying momentum is weakening.

If the price falls below the current trend line, it could drop to around $79, which is a key support level based on Fibonacci retracement analysis. This $79 level also happens to be where we’ve identified daily support, making it a strong area where the price might bounce back.

Analyst @remdocan Points to $96 as Key Decision Level

Technical analyst Remdocan shared a detailed analysis on X, pointing out several factors that support their view. They believe the 83.052 low is a critical price point that’s currently supporting a short-term upward trend.

If the Relative Strength Index (RSI) shows a divergence, it suggests the price may soon stop rising. Remdocan believes the $96 level is a key area to watch for potential changes in the price trend.

If the price consistently closes above this level, it could lead to a rise towards the previous high. However, if it falls back down from there, we might see another price decrease.

The analyst sees $83 as a key price level. If the price falls below $83, it could drop further to between $70 and $65, an area considered a strong level of support based on Fibonacci analysis and market psychology.

On deeper pullbacks, the $60 daily level would protect the broader bullish structure.

Silver Price Outlook

Silver is currently looking positive, but could still see some short-term price swings. Based on its price chart, it’s expected to gradually rise towards $101 over the next few months.

Looking at the 4-hour chart, the price is likely to drop to around $79 initially. Overall economic conditions will play a big role in determining what happens next.

As I’ve been following the markets, it seems like expectations for interest rate cuts are building quickly, potentially driving prices higher. However, if the economy slows down and investors start avoiding risk, I anticipate silver will likely be more affected than gold. My recent research at BeInCrypto suggests the dollar is losing its status as a safe haven, which is why I’m particularly focused on metals like silver right now.

As an analyst, here’s what I’m watching: currently, the $89 level is key resistance. If the price breaks above that, I’d expect the uptrend to continue. However, if we drop below $83, that would invalidate the current setup and likely lead to a test of the $79 to $70 support area.

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2026-05-14 18:30