XAG Price Analysis: Silver Holds Above Major Support as RSI Enters Oversold Area

Silver continued to trade sharply lower as XAG pulled back from its recent rally and tested key technical support zones.

Momentum readings also show pressure may be stretched in the short term. Uray said RSI has reached the oversold region, which can sometimes lead to a reaction rally after a heavy decline.

Silver Tests Key Support

Kamile Uray’s daily chart shows silver falling from the upper resistance region after failing to extend its previous rally. Price has moved back toward the mid-$70 area, where traders are now watching whether buyers return.

The X chart marks $70.783 as the first important low during the current decline. If silver holds above that level, a rebound attempt may develop as short-term sellers begin taking profit.

However, the upside path remains limited unless XAG can reclaim higher resistance. Uray said a reaction rally that fails to break above $90 could still leave silver exposed to another decline.

Notably, the $66–$60 range stands out as a deeper demand zone. Buyers stepped in around that area before, so traders may watch it closely if the current support breaks.

Elliott Wave Chart Signals Caution

More Crypto Online also cautioned that the sell-off of silver is continuing. From the Elliott Wave chart, XAG is on the downside after a big rise and is at the lower end of the Elliott Wave structure.

The chart indicates a potential breakout to the lower levels of the range. The analyst’s setup does have some room for further downside, but Silver is sitting near an important area where a bounce could occur.

This outlook is also consistent with the broader technical outlook. Silver has yet to make back the downside range, and the most recent candles reveal weak recovery bids since the sharp decline.

The RSI level is overbought, and this can be a sign to consider a short-term bounce. Despite this, the market needs to overcome resistance for a reaction rally to become a continuation rally.

$90 Remains the Main Barrier

Always Win’s chart is a wider time frame for the next few weeks. It indicates silver is trading over the $70 mark and could extend the advance toward the $100 level before then dropping back.

The first big test is that scenario, where $90 remains the focus. When silver continues to move higher but is unable to close near the level, the sellers can exploit the bounce to drive the price back towards the support.

According to the analyst chart, if a clean break is above the $90 mark, the setup would change, and there would be a better probability of a wider recovery. It would also bring the $96 to $100 area into play.

Silver is still in a decision phase for now. Support at $70.783 keeps the rebound case alive, but a move lower would have XAG heading to $66 and then $60, where the larger bull shape is more robust.