🚨 SILVER SHOCK: From $121 to $85 in 72 Hours! Is the "God Candle" Dead? 🚨
The silver market ($XAG ) just witnessed one of the most violent price dislocations in commodity history. After a parabolic ascent to an all-time high of $121.56, the XAG/USDT pair suffered a brutal 33% "Devil's Drop," wiping out roughly $1.5 trillion in market capitalization in just two sessions.
Why did the market melt down?
The "Warsh Effect": The nomination of Kevin Warsh as Federal Reserve Chair sent shockwaves through the precious metals complex. Known as a "hard money" advocate, his potential leadership triggered a massive rally in the US Dollar Index (DXY) to above 97.00, raising real yields and crushing non-yielding assets.
China’s Faucet: Beijing’s new export licensing regime (effective Jan 1, 2026) has turned silver into a strategic state resource. While rumors of a total ban fueled the initial "FOMO" rally, reports of record Chinese export volumes in late January triggered a massive profit-taking cascade.
The Liquidity Paradox: As prices soared, refining chokepoints became overwhelmed. The bid-offer spread for physical scrap widened to $10–$15 below spot, leaving paper traders to face a "liquidity vacuum" when the algorithms turned bearish.
The Bull Case is NOT Over:
Despite the crash, the industrial supercycle remains intact. Silver demand for AI data center cooling and high-performance interconnects is projected to increase 15-20% this year. With a cumulative supply deficit of over 820 million ounces, the structural floor is rising.
Technical Levels to Watch:
Support: $79–$84 zone. The daily RSI is currently screaming "oversold" at 27.36, suggesting a potential bounce.
Resistance: Bulls must reclaim $90–$95 to regain momentum..
Is this a "buy the dip" moment or the start of a deeper correction? Let us know your strategy below! 👇
#XAG #SilverCrash #PreciousMetalsTurbulence #BinanceSquare #Write2Earn! $BTC $XAU
NFA DYOR