2025-12-30 04:28:07

The current rally in silver prices seems to be coming to an end. Based on recent trends, the parabolic move has clearly broken down, and market sentiment is beginning to reverse.

Looking back at historical data, each significant surge in silver has been followed by a deep correction. The 1980 rally ultimately crashed by 90%; the 2011 rally saw a subsequent decline of 75%; even the rapid rise in 2020 experienced a 35% sharp pullback. This time? Silver briefly surged to $81. If the decline mirrors the 2011 percentage drop, the target could potentially fall to the $24 range.

The trigger for this correction is straightforward—margin requirements have been increased. This usually causes a chain reaction: highly leveraged positions are forced to close, banks initiate forced liquidations, and the market falls into a stampede-like decline. For traders with heavy positions and high leverage, it’s already very risky.

From a broader macro perspective, this reflects an old and familiar issue: markets driven purely by sentiment will ultimately backfire on participants. Silver’s volatility may just be the beginning; this shock could gradually propagate through the entire precious metals sector, and then impact the wider financial markets. Risks are flashing warning signs, so it’s important to stay defensive.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
6
Repost
Share

Comment

0/400

AirdropHuntress

· 14h ago

Historical data is right here: a 90% drop in 1980, a 75% drop in 2011. This time, dropping from $81 to $24 is really not an outrageous thing. Increase the margin and you'll be liquidated immediately. Guys using high leverage should be sleeping poorly now.

View OriginalReply0

ReverseFOMOguy

· 14h ago

81 dollars rushes up only to fall back again, how many times has this script been played? High leverage buddies, it's time to wake up now. When the margin is withdrawn, panic sets in—there's no more tenfold dreams for ten years. History repeats itself, everyone. Greedy ghosts will never learn. This is market education; the tuition is expensive but effective. When a margin call comes, no one can escape. I've seen it too many times. Market driven by emotions should end like this. Heavy traders really got a bad taste this time; they should have reduced their positions earlier. A stampede downward, it hurts just to watch. $24? Maybe it's the bottom golden pit again, haha. As precious metals propagate this wave, no one can stay unaffected. The risk warning lights have been on for a long time; only when liquidation happens will you regret it.

View OriginalReply0

JustAnotherWallet

· 14h ago

Another round of leverage explosions is happening. The brothers who bought in at high levels are really in trouble this time.

View OriginalReply0

SandwichTrader

· 14h ago

Once it hits $81, you should know the story is over. These leveraged players are probably going to be wiped out completely.

View OriginalReply0

MoneyBurner

· 14h ago

$81$ dollars surge and then you should run, once the margin increases, the true nature is revealed, those with high leverage will be liquidated. I knew it, this wave of emotion-driven market will eventually backfire, history will repeat itself. Are you starting to buy the dip again? I dare not. Margin killer, always appears on time. Wait, could this spread to the entire precious metals sector? Then my portfolio would be in danger. Can it drop to 24 this time? I'm a bit hopeful but also very anxious. A parabolic break is a signal, those who should run early have already run. Brothers with high leverage, your days are probably tough now, I mourn for you. Can this shorting wave make a huge profit? I want to try. Stampede-like decline is the most terrifying, liquidity evaporates instantly.

View OriginalReply0

GasOptimizer

· 14h ago

$81 surge, then turn around and crash back down—this is how history repeats itself. When margin calls and leverage trigger a liquidation wave, the script is always the same. Why do people still rush in? Silver has never escaped the fate of being halved after reaching a peak since 1980. Why should this time be any different? Those with high leverage should be very nervous now; a stampede-like decline is so ruthless. When precious metals fall, the entire financial market trembles along, revealing what systemic risk truly means. Honestly, a pure sentiment-driven market will eventually get called out; this wave of silver is a living lesson. From $81 to $24? If it really follows the 2011 pattern, it will be interesting—an opportunity to bottom fish has arrived. Raising margin requirements signals that the big players are clearing their positions; retail investors are about to become the bagholders again. Will history repeat itself? Absolutely, just with different participants. Better to prepare defensively? No, it’s better to understand the rules early and avoid being harvested like a market textbook.

View OriginalReply0