🚀 $XAG : Shakeout Over, Next All-Time High Incoming? 🥈

Silver just took a brutal dive—from $121 → mid-$60s. Looks nasty on the chart. First reaction: “bull run over.”

But Karel Mercx sees it differently: this was leverage being flushed, not demand collapsing.

Key Takeaways:

1️⃣ Leverage Wipeout, Not Market Breakdown

Futures traders were massively over-leveraged on COMEX.

Volatility + margin calls = forced liquidations → price drop.

Bottom line: silver itself didn’t break; paper leverage did.

2️⃣ Open Interest Falling = Healthy Reset

Contracts peaked ~176k at $50 → now ~137k.

Speculative excess cleared → next move may have less selling pressure.

3️⃣ Physical Market Still Tight

London lease rates ~4.5% (normal ≈ 0–1%) → supply stress is real.

Extreme backwardation: buyers pay premium for immediate delivery → industrial demand strong.

4️⃣ Bullish Setup Emerging

COMEX & Shanghai inventories still falling.

China restricts exports; US labels silver critical.

Forming a higher low around $70 could become the base for next leg higher.

⚡ Reality Check: Crash shook out weak hands. Fundamentals? Still intact. Physical demand + market structure point toward silver entering a high-probability bullish environment.

#Silver #SILVER #Commodities #CryptoMarkets #TradingInsights