![Crypto Terms Glossary: What is Divergence? Crypto Terms Glossary: What is Divergence?](/img/190/470/what-is-divergence-sm.webp)
In an investment context, divergence is when two data points go in opposite directions when charting technical analysis, such as when the current price of an asset rises, and its relative strength index (RSI) drops. The opposite of divergence is convergence, where two technical indicators rise or drop in the same direction. Divergence can also refer to a process whereby the price of a futures contract drifts farther away from the spot price of an underlying commodity as the delivery date of the contract expires. This type of divergence can result in the contract being liquidated.