Silver Price Analysis: XAG/USD bounces off one-month-old support to prod 50-SMA above $25.00

• Silver price grinds higher after snapping two-day downtrend, taking a U-turn from one-month-old ascending trend line.
• Receding bearish bias of the MACD, steady RSI (14) allow XAG/USD buyers to extend latest rebound past 50-SMA.
• Support-turned-resistance line from early March appears crucial for Silver buyers to tackle.
• XAG/USD bears have a bumpy road on their return unless breaking 200-SMA.

Silver price (XAG/USD) seesaws around $25.20 after bouncing off short-term key support to defy the two-day losing streak the previous day. Even so, the bright metal struggles with the 50-SMA to justify the recent improvement in the bullish bias.

That said, the receding strength of the bearish MACD signals and steady RSI (14) can offer a tailwind to the recent recovery moves of the XAG/USD and allow it to cross the immediate hurdle, namely the 50-SMA level surrounding $25.25.

However, the previous support line stretched from March 10, around $25.95 by the press time, quickly followed by the $26.00 round figure, will challenge the Silver buyers afterward.

Also acting as an upside filter is the latest swing high of $26.06, also the highest level since April 2022.

Should the XAG/USD price remains firmer past $26.06, the odds of witnessing a run-up towards crossing the April 2022 peak of near $26.25 and then a rally targeting the previous yearly peak of $26.95 can’t be ruled out.

On the flip side, the downside break of the aforementioned one-month-old upward-sloping support line, around $25.00 by the press time, restricts the immediate downside of the Silver price.

Following that, a horizontal area comprising multiple lows marked since April 05, around $24.80-70, could challenge the XAG/USD sellers.

It should be noted, however, that the Silver bears should remain cautious unless witnessing a clear downside break of the 200-SMA support level surrounding $23.05 at the latest.

Silver price: Four-hour chart

Trend: Further recovery expected