Silver Price Collapses 40% in Days as Analysts Warn of a More Dangerous New Phase

Jakarta, Pintu News – Global commodity markets have been shocked by a fall in silver prices that has been described as one of the sharpest since 1980. From a peak of around US$120 or approximately Rp2.01 million per ounce on January 29, prices have fallen rapidly to around US$72 or approximately Rp1.21 million. This drop of around 40% occurred without a single fundamental trigger that could truly explain the scale of the correction.

Silver price falls the most since 1980

According to Finance Feeds, international media reports highlighted that this latest move was the sharpest daily drop in silver prices since the early 1980s. Typically, extreme events like this are associated with clear fundamental shocks, such as aggressive monetary policy or a systemic liquidity crisis.

This time, however, there was no single factor to blame, so the focus of analysis shifted to the dynamics of market participants’ positions and behavior. This situation makes it difficult for many investors to make rational decisions amid the sharply increased volatility.

Prior to the fall, silver briefly breached the US$115 range or about Rp1.93 million per ounce, which was previously discussed as an important psychological level. This movement occurred within a medium-term upward channel that has dominated the trend in the past six months.

During this period, prices recorded gains of more than 200%, a rally that naturally triggered massive profit-taking. When extreme rallies like this end, commodity markets often enter a very aggressive structural correction phase.

Read also: 0.5 Gram Gold Price in 2026

Distribution, Forced Liquidation, and the Wyckoff Pattern

Some technical analysts consider that this fall is very consistent with the distribution pattern in the Wyckoff theoretical framework. In the final phase of the rally, volatility increased sharply as the price moved from point A to B near the upper limit of the up channel.

Such patterns usually indicate that what is often called “smart money” is starting to distribute long positions to retail participants who are new to the market. In other words, institutions are gradually reducing exposure before a major correction begins.

Afterward, there is a brief false breakout above peak A which can be classified as UTAD (Upthrust After Distribution). This pattern often marks the climax of the distribution, when the price is pushed slightly higher to attract the last buyers before a sharp reversal.

Shortly after, the selling pressure increased dramatically and XAG/USD broke the channel median firmly, and then fell through its lower boundary. This series of events reinforced the view that the market had transitioned from the Distribution phase to the Mark-Down phase.

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Reference:

• Finance Feeds. Silver Suffers a Historic Collapse as Market Enters a New Phase. Accessed February 4, 2026