Silver is now at 58.54u, and it’s almost touching the previous high at 59.4.
In the past two times it reached there, it was pushed back. Now, though, the price has moved back above the moving average, and buy orders in the order book are piled up thickly—just looking at these, it does seem pretty strong.
But open interest is shrinking. As price rises, leveraged funds are retreating. This rally isn’t being pushed higher by fresh long additions—it’s shorts covering. The number of whale accounts is increasing, yet positions are actually decreasing. At this level, even big players don’t dare to push full size.
With it approaching the prior high, open interest is shrinking and whales are cutting. This kind of structure isn’t the setup for a breakout; it’s capital showing hesitation.
Whether it can break through 59.4 isn’t about whether people are calling for longs—it’s about whether new money is coming in to take the other side.
Chasing longs at this point isn’t great in terms of cost-effectiveness. Wait until it gets near 59.4 and then see how the资金 choose before deciding.
#silver $XAG