Divergence Analysis: Why Crypto Sentiment Remains Resilient Despite Volatility

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The market sentiment in the crypto space currently appears remarkably resilient despite ongoing price fluctuations. According to well-known crypto influencer Murphy, the key to understanding this stability phase lies in a nuanced view of divergence and technical indicators.

Murphy: Normal Thinking Maintains Market Confidence

Murphy emphasizes in his latest post on X that maintaining a rational mindset is crucial. Even if there is no obvious divergence between price movement and technical indicators, the market sentiment remains positive as long as the seven-day change rate does not turn significantly negative. This perspective highlights that market participants’ confidence remains intact.

Technical Indicators as a Compass for Sentiment

The absence of negative divergence is interpreted by many analysts as a bullish signal. For crypto sentiment, this means: as long as short-term metrics do not collapse dramatically, market psychology stays firm. Murphy uses this technical logic to show that short-term volatility does not automatically lead to a shift in sentiment — a reassuring message for risk managers and investors.

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