Silver Price Trend Update $XAG: Support Still Effective, Market Is in Accumulation Phase

Previously, I shared with the community that the short-term support zone for silver $XAG is around 78. In fact, the market reacted quite accurately: the price pulled back to 78 and then quickly rebounded strongly to the 85 area.
On March 4th, I reiterated that if you want to open a long position, you should wait around 80, with a stop loss below 78. This is a zone with a good risk/reward ratio. The market then followed the expected scenario: the price dipped to around 80, found support, and has now recovered to the 84 area. This indicates that the short-term support structure for silver is still functioning effectively.
On the upside, the notable short-term resistance zone is around 88. If buying momentum is strong enough to break this level, the upward drive could become clearer. Long-time followers know I closely monitor silver, and price levels are often identified quite accurately.
However, from a long-term perspective, the current trend for silver still leans more toward consolidation rather than entering a strong bullish cycle immediately. When the price previously reached the $121/ounce level, most of the supply had shifted from institutional holders to retail investors. This means the market needs more time to redistribute and shake out weak hands.
In other words, the “washout” process and structural change in holdings are not yet complete. For large capital flows, initiating a strong rally right now would be unreasonable. The market is likely to continue oscillating to absorb more liquidity.
Therefore, patience remains very important. For both silver $XAG and gold $XAU, the next major upward cycle — possibly setting new all-time highs — could occur in the second half of this year once the accumulation process is finished.
Currently, a prudent strategy is to monitor clear support and resistance zones, trade short-term within defined ranges, and avoid FOMO until the market confirms a long-term trend.