It retreated from an all-time high due to profit-taking... but technical signals remain bullish

Basis

• XAG/USD dropped to around $65.70 on Thursday Asian trading, retracing part of the previous day’s rally to a new high
• The entry into overbought territory on the daily RSI served as a key catalyst for profit-taking
• The strong trend formed after breaking through $64.00 remains valid, and there is a high likelihood of buying interest during the correction phase

After a sharp rise like Groot, a consolidation phase… how deep will it go?

Silver prices are retreating somewhat from the record highs set the previous day. During Thursday’s trading, they are moving around $65.70–$65.75, with intraday declines exceeding 1%. However, the distance from the previous peak remains narrow.

Most analysts see this not as a simple trend reversal but as a temporary pause after an excessive rally. Assets that rise too quickly naturally undergo corrections. Silver has entered that cycle.

Profit-taking as a turning point… RSI overbought signals

The trigger for this decline is clearly reflected in technical indicators. As the daily RSI entered overbought territory, profit-taking to unwind the previous day’s surge naturally increased. This signals that momentum is beginning to fade.

The 1-hour RSI is oscillating around 59.95, between neutral and bullish, and the MACD histogram has fallen below zero, indicating a short-term cooling phase. Looking at the numbers alone, it seems the momentum has definitely slowed down.

Breaking through $64.00 changed the game… it has now become a support level

What’s interesting here is that breaking through the $64.00 horizontal resistance in the last trading session is not just a price event but is seen as a signal establishing a short-term bullish scenario. More importantly, this level now overlaps with the 100-hour SMA, which has been redefined as a support line for future pullback trades.

The 100-hour SMA itself maintains an upward slope, meaning that as the correction deepens, there is room for demand to come in at lower prices.

( Two scenarios… bullish or bearish?

Bullish scenario: If the price stays above the 100-hour SMA, the current correction is likely to be interpreted as a “buying opportunity.” If the MACD turns positive and RSI remains above 50, the upward trend gains further legitimacy.

Bearish scenario: Conversely, if the price clearly breaks below the 100-hour SMA, a deeper short-term pullback could occur. This could serve as a signal for a larger correction.

For now, the big picture is not entirely broken. Technical indicators only show a temporary overbought correction phase; the overall upward trend remains intact.