@barryjessie
Divergence is a useful early-warning indicator: falling active users with rising price suggests weakening breadth and possible fragility, increasing the chance of a corrective phase when liquidity thins. Conversely, rising active wallets with stagnant prices can presage accumulation and a forthcoming rally once demand materializes. But divergences must be contextualized — temporary airdrop activity, bot traffic, or testnet events can distort counts. Combine active-user trends with unique address growth, transaction value, and exchange flows to improve signal reliability. Divergence increases the probability of near-term reversals but is not a deterministic trigger.
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