How to maintain your sanity when job searching?

Good health habits go a long way:

1. Consistent sleep
2. Regular exercise
3. Spending time with loved ones (mental health)

If you sacrifice these to go deeper on the job search (which is very tempting), it's extremely easy to fall into a doom spiral you can't pull out of.

I do have people In the same boat as me but like surrounding yourself with people who are also struggling to get a job doesnt help because that just reinforces the doom cycle

This depends a lot on people's personality types. Solidarity is important, but you need some people with optimistic personalities to cancel out those who are more pessimistic. If everyone is doom and gloom, you are indeed right in that things just get worse.

I highly recommend this thread as well: "How to stay motivated during the job search when facing rejections?"

Hang in there!