March 31, 2023 8:6 AM

Silver Price Analysis: breakdown at $23.30 could lead to further XAG/USD declines

Going into Friday's European session, the silver price (XAG/USD) is slightly offered at $23.85 after paring weekly gains at the highest levels in two months. In doing so, the shiny metal records its first daily loss in four days ahead of the crucial US and European inflation statistics.

The price of silver declined from a two-month high, breaking a three-day gaining trend.
A two-week-old bullish channel limits potential downside before the important SMAs.
Although the RSI is overbought, bears are not yet in sight. The XAG/USD price may yet decline.

The recent decline in the price of the precious metal may be related to a retreat from a two-week-old bullish channel's resistance line. The overbought RSI is also justified by the XAG/USD decline (14).

But, unless the price breaches the $23.30 level, which constitutes the indicated channel's lower line, positive MACD signals and the channel formation keep Silver bearish off the table.

Yet, the extra downside of the bullion might be contested by the 100-SMA and 200-SMA between $22.30 and $21.70.

If the silver price continues to decline past $21.70, it may first fall to the round $20.00 mark before dropping to the current monthly low of $19.90.

On the other hand, the XAG/USD rebound has to break through the top line of the short-term channel, which is at $24.05 at the earliest.

The annual high, which was about $24.65, can, nevertheless, test Silver purchasers before returning power to them.