Silver Price Analysis: XAG/USD sellers approach $25.30 support confluence

• Silver price drops for third consecutive day after refreshing multi-day top, holds lower grounds of late.
• Downside break of two-month-old ascending trend line, bearish MACD signals suggest further XAG/USD declines.
• Convergence of 10-DMA, 21-DMA holds the key for further downside of the Silver Price.

Silver Price (XAG/USD) remains on the back foot around the intraday low of $25.50 as it prints a three-day losing streak during early Tuesday.

In doing so, the bright metal justifies a downside break of an upward-sloping support line from early March, now immediate resistance near $25.65. Adding strength to the downside bias are the bearish MACD signals and the RSI (14) line’s retreat from overbought territory.

With this, the bullion appears well-set to decline towards a convergence of the 10-DMA and 21-DMA, around $25.35-30.

In a case where the XAG/USD remains bearish past $25.30, the odds of its further downside targeting a four-month-old horizontal support zone, around $24.55-50, can’t be ruled out.

It’s worth noting that the Silver price weakness past $24.50 makes it vulnerable to plunging toward the early January lows surrounding $23.00.

On the flip side, a daily close beyond the $25.65 support-turned-resistance can recall the XAG/USD buyers.

However, the double tops around $26.10 and the overbought RSI (14) line can challenge the Silver buyers afterward.

Should the quote remains firmer past $26.10 on a daily closing basis, highs marked in April and March of the last year, respectively near $26.25 and $26.95 appears more likely.

Silver price: Daily chart

Trend: Further downside expected