Market Sentiment Analysis: Silver (XAG/USD) - February 23, 2026

Summary of Institutional Sentiment
Institutional smart money currently views the correction from the $120 peak to the $80 level as a healthy consolidation and a speculative washout rather than a long term trend reversal. While retail sentiment on X (Twitter) via #SilverSqueeze remains highly volatile and focused on short term price action, major financial institutions are treating the $80 mark as a significant new floor.

Institutional Analysis and Positioning

1. Speculative Washout: Major analysts, including those from Citigroup and Macquarie, indicate that the plunge from $120 was a necessary technical reset. The parabolic move to $120 was driven by high leverage and retail FOMO. The correction to $80 has cleared out weak hands and excessive margin positions.
2. Structural Deficit: Institutions remain focused on the fact that 2026 marks the sixth consecutive year of a global silver supply deficit (estimated at 30 to 95 million ounces). This fundamental imbalance is cited by J.P. Morgan and Bank of America as the primary reason the long term uptrend remains intact.
3. New Support Floor: Technical data shows that the $80 level, which previously acted as a psychological resistance, has flipped into a formidable support zone. Institutional buying has been observed in the $77 to $82 range, suggesting that "smart money" is accumulating at these levels.
4. Macro Drivers: The "Warsh Shock" (referencing the nomination of Kevin Warsh to lead the Federal Reserve) initially caused a dollar spike that pressured silver. However, institutions are now pivoting back to silver as a hedge against the massive U.S. national debt and ongoing geopolitical tensions.

Technical Indicators and Market Feed
Current Price: $84.00 - $87.80 (Reclaimed $80 milestone on February 23, 2026)
RSI Status: Currently near 66, rising from oversold levels below 30 in early February, indicating the panic phase has ended.
MACD: Has crossed into positive territory on the 4 hour and daily charts, signaling a return of bullish momentum.
Immediate Targets: Institutions are eyeing a move back toward $93.00 in the short term, with year end 2026 forecasts ranging from $100 to $110.

Retail vs. Institutional Divide
Retail sentiment under #XAGUSD remains fearful and reactive to daily swings, with many small traders liquidated during the "flash crash" to $64. Conversely, institutional commentary emphasizes that industrial demand from the solar and AI sectors provides a "hard floor" that prevents a full reversal to pre 2025 prices.

Conclusion
The $80 level is being actively defended by institutional buyers. The consensus is that the "bubble" has burst, but the "bull market" survives. The current phase is defined by market maturity and the establishment of a higher equilibrium price based on industrial scarcity.
#xag #silver