Silver price has already delivered the move analyst Northstar called months ago. Now the question is whether the recent pullback toward the $55-$57 area marks the end of the correction or the start of something deeper.
Silver recently traded around $60-$61 after rebounding from the high-$50s. That recovery came after a much larger decline from the chart’s marked peak near $121, leaving the metal at a major long-term technical zone.
Northstar’s chart argues that this is not just another random support level.
Why $55-$57 Is So Important for Silver
The monthly chart uses a log scale and connects several major historical turning points.
Northstar specifically notes that recent price action has confirmed this zone as important support.
That makes sense visually.
Silver rallied vertically into the 2026 peak, then fell hard enough to retest the same long-term resistance area it had previously broken above.
In technical terms, this is the classic question of whether old resistance can become new support.
If $55-$57 holds, the chart can still be interpreted as a successful backtest after a multi-decade expansion.
If it fails, the next downside levels on Northstar’s chart become much more uncomfortable.
He marks roughly $46.50 first, followed by $42.50.
The bigger structure is also unusual. His chart frames silver as a gigantic multi-decade cup-and-handle formation, with the current decline representing a potential retest after price finally escaped the historical ceiling.
That does not guarantee another major rally, but it explains why the analyst considers this zone so important.
Macro Conditions Are Still Pulling Silver in Both Directions
Silver is currently dealing with conflicting forces.
The U.S. dollar remains near an 18-month high, and the 10-year Treasury yield recently reached roughly 5.3%. Both tend to pressure precious metals because investors can earn more from yield-bearing assets and dollar-priced commodities become more expensive for buyers using other currencies.
Inflation data is another major risk.
Markets are waiting for U.S. CPI and PPI releases this week, with another Fed hike still considered possible by year-end. Hotter inflation could keep yields elevated and create another headwind for silver.
Oil is also important.
Brent has been trading above $100 again amid geopolitical tensions. Higher energy prices can feed inflation expectations, which may keep central banks restrictive for longer.
But silver has support from the other side too.
It bounced 2.4% to about $60.77 on Friday as precious metals recovered from recent lows.
There is also the industrial-demand story. Silver is not only a monetary metal. It is heavily used in solar, electronics and other industrial applications, meaning supply conditions and manufacturing demand can matter just as much as Fed policy over longer periods. The Silver Institute’s 2026 survey also points to strong global demand flows and large movements of refined silver through Asian markets.
Read also: Here’s How High Gold and Silver Prices Could Go This Week
Our Take on the Silver Price Outlook
Northstar’s call deserves attention because the market has already reached the area he identified well in advance.
But the more important part of his current chart is not that the prediction worked.
It is what happens now.
The $55-$57 zone is the dividing line.
If silver keeps holding above it and starts reclaiming the mid-$60s, the correction can increasingly be viewed as a successful retest of a major historical ceiling.
That would keep the broader bullish structure intact and put higher levels back into focus over time.
If $55 fails decisively, however, the technical picture changes.
The chart itself then leaves room toward approximately $46.50 and potentially $42.50.
