- Silver plummeted 4% today to $73.40; my technical analysis of the 4-hour chart confirms a “Bearish Flag” breakdown, signaling a high-probability move toward the $70.00 psychological floor.
- A “liquidity vacuum” caused by the Chinese Lunar New Year has left silver defenseless against a surging U.S. Dollar.
Silver (XAG/USD) was under significant pressure today, sliding toward the $73.40 mark as global markets grapple with a “liquidity vacuum.” With the Shanghai Gold Exchange (SGE) closed for the Lunar New Year, the usual physical support from China has vanished, leaving silver vulnerable to Western speculative selling. Today’s price action is a classic test of technical resolve against a backdrop of a firmed U.S. Dollar.
Compounding this is a surging U.S. Dollar. With the DXY climbing above 104.50 on “Hawkish Fed” expectations, silver is being liquidated by institutional desks to cover margin in other assets.
Silver Price Forecast: The $70 Battleground
From a technical perspective, silver’s daily chart shows a clear “lower high” pattern since the Jan 26 peak of $121.64.
- The Bearish Case: If the daily candle closes below $72.80, the door opens for a rapid slide to the $70.00 psychological level. In a thin-market environment, “stop-loss hunting” below recent lows is a high-probability event.
ShaninFx echoes our bearish-leaning sentiment, noting that while $70 has held previously, a failure there could trigger a deeper correction toward $64 in the tweet attached here.
- The Bullish Case: For a recovery to stick, bulls need to reclaim the $75.00 handle. A move above this level would signal that the current sell-off was merely a liquidity flush rather than a structural trend change.
Silver Price Chart Analysis Today
| Signal Type | Price Level | Actionable Analyst Insight |
| Immediate Support | $72.86 | The “Do-or-Die” level. A breach here triggers institutional sell-stops. |
| Major Resistance | $79.42 | The 50-day EMA pivot. Reclaiming this is required to end the bearish trend. |
| Daily Bias | Bearish | Avoid “knife-catching” until a reversal pattern forms on the 1-hour chart. |
Conclusion: Managing the “Silver Liquidity Vacuum”
Silver’s current price action is a reminder that technical levels are only as strong as the volume supporting them. While the long-term industrial story for silver remains intact, the immediate lack of Asian demand has shifted the “power of the pen” to the bears. Traders should remain wary of entering large positions until the $70-support is either defended with high volume or broken decisively.
The liquidity drain is expected to last until the Shanghai markets reopen on February 24, 2026. Expect erratic, wide price swings until then.
It is a strong possibility if the $74.11 support level fails to hold this week, especially with high margin requirements forcing leveraged traders to liquidate.
While short-term volatility is high, many institutional analysts, including J.P. Morgan, maintain a constructive year-end target of $85, citing a persistent silver supply deficit and industrial demand in the green energy sector.