The CVOL divergence in altcoins signals a mismatch between expected volatility and actual price movements, hinting at a market structure shift. This may indicate a transition from a trending phase to consolidation, or vice versa. For example, if CVOL suggests high volatility but prices stay stable, a breakout or reversal could be imminent. Traders might adjust strategies, shifting from trend-following to mean-reversion approaches, or vice versa. It also prompts them to seek confirmation from other indicators and tweak risk management to prepare for potential volatility spikes or changes in market direction.