Silver Price Correction: Another Dip to $49 Possible, But That Could Be the Ultimate Buying Opportunity
Silver is at $56.92 today, up about 2% off the lows. But even with that bounce, it’s still stuck below the $57.50 resistance level. So traders are split, some think the drop is over, others say there’s one more dip left.
One analyst, MCO Global, says maybe both are right. He thinks the correction that started back in January is wrapping up. But he also says we could see one more fall to $49–$52 before things turn around.
And if that happens? He calls it a gift. One of the best buying spots before the next big up move. He still sees much higher prices down the road.
What you'll learn 👉
Why the Silver Price Correction May Be Nearing Its End
MCO Global sees silver stuck in a wave (4) correction, that’s the pullback that started after silver peaked near $120 earlier this year. If you zoom out, the drop has already eaten up a big chunk of the last rally. And now the silver price is right inside a key Fibonacci zone between $49 and $52.
$SILVER
— MCO Global (@moretradingonl) July 19, 2026
Silver's wave (4) correction that started in January is getting long in the tooth.
Another dip toward $52-$49 remains possible, but that zone could also be where the correction finally ends and wave (5) begins.
Break above $63.30 and the low might already be in. Targets… pic.twitter.com/4xBA7pf3AD
That zone matters because it’s where the 61.8% and 78.6% retracement levels are. Corrections often end there before the next push up. So another dip into that area? Not a problem. It could actually finish wave (4) and set up wave (5) to the upside.
On the chart, $63.30 is the line bulls need to take back. Break that, and the correction is probably done. Then the next targets come into play, $74, then $89, and if buying really picks up, $103.
What the Silver Chart Is Showing Right Now
We had a look at the chart, and short-term momentum has started improving after buyers defended the $55-$56 area. The Ultimate Oscillator has climbed to 55.98, moving above the neutral 50 level. That points to improving buying pressure, although it remains well below overbought territory.
The Stochastic is turning up too, %K at 78.81 and %D at 72.44. That tells us buyers have been in charge over the past few sessions. But those levels are getting high enough that sellers usually start stepping in to take profits.
Price action still needs more confirmation. The silver price remains below resistance near $57.50 and the more important barrier at $63.30. Holding above $55 keeps the recovery intact, but losing that support could open another move into the $52-$49 demand zone highlighted by MCO Global.
News That Could Push the Silver Price Higher This Week
Geopolitics is still the main driver for silver right now. The US just carried out its ninth straight night of airstrikes on Iranian targets. Iran says the ceasefire is dead. And they intercepted four ships near the Strait of Hormuz.
Oil prices jumped, Brent above $90, WTI near $85. All of that pushes people into safer assets. And silver, being one of them, bounced nearly 2% today.
Also, traders continue monitoring Federal Reserve policy. Markets now price a 53% probability of a September rate hike, up from 47% a day earlier after hawkish comments from Fed officials. The stronger U.S. Dollar Index near 101 and higher Treasury yields remain obstacles because higher interest rates reduce the appeal of non-yielding assets such as silver.
The bigger picture for silver still looks tight. The market is expected to be short by 73 million ounces this year. That’s a real supply deficit, not just talk.
The gold-to-silver ratio dropped from 71.77 to 70.74. That means silver is beating gold right now, buyers are still interested even with the recent pullback.
Related Silver News: Robert Kiyosaki Just Made a Massive Gold and Silver Price Prediction
Silver Price Prediction: Can XAG Rally Toward $74 and $103?
If the silver price breaks above $63.30, the Elliott Wave correction would likely be complete. That would put $74 as the next upside target, with $89 and $103 becoming achievable if geopolitical risks remain elevated and physical supply stays tight.
The neutral outcome keeps the silver price trading between $55 and $63 as buyers and sellers battle for control. This would allow momentum indicators to reset before the next sustained move.
The bearish path begins with a break below $55, bringing $52-$49 back into focus. Even in that case, MCO Global believes the zone could mark the final stage of the correction before wave (5) begins, making it the area many long-term investors will be watching closely.
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