SILVER (XAGUSD) — Market analysis of Smart Money / ICT
The recent movement of silver is not emotional selling by retail traders, but an engineered liquidity event.
1️⃣ Why did the drop happen? (ICT View)
The market first showed a strong bullish expansion → then:
✔ Buy-side liquidity grab at the peaks
✔ Sharp drop = entry of institutional orders
✔ Ignoring Upper FVG, which created imbalance
✔ Then aggressive sell-off = cascade of long liquidation
This is not an ordinary crash — it's stop-hunt + liquidity engineering.
Where retail traders buy on breakout, smart money takes profit.
2️⃣ What is the price doing now?
Structure is critical now:
🔹 Price inside lower FVG zone
🔹 Candles close above FVG center line = absorption
🔹 Near the green line high liquidity pool (sell stops + weak longs)
🔹 RSI is trying to bounce from oversold region
This shows that the market may transition from distribution to accumulation phase.
3️⃣ Physical silver vs digital
Many overlook this:
Physical demand for silver is high → supply is limited
But on exchanges:
⚠ Futures contracts and leveraged contracts dominate
⚠ Paper silver > physical silver
⚠ High leverage = easy liquidations = price suppression
Smart money first works with derivatives → then real price discovery begins.
4️⃣ Where can the price go? (Probable Path)
According to ICT structure:
➡ Possible liquidity sweep below the green zone
➡ Then the upward movement to fill upper imbalance
➡ Target zones:
Mid FVG
Previous consolidation block
Buy-side liquidity above range highs
If the green zone holds → possible re-accumulation before the rise.
If breakout → next target = deeper sell-side liquidity.
Conclusion
This is not a random dump.
This:
Liquidity grab → imbalance creation → long liquidation → smart money positioning
Retail traders are panic selling.
Institutions are accumulating positions.
The real movement of silver begins when most give up.
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#Silver #XAGUSD #ICT #SmartMoney #Liquidity #Trading #PriceAction #Forex #Commodities 📈
