In the past week, the Total index’s price has not been able to scale above 25-day EMA since falling below it on Jul 15. The price remained inside the descending channel, NWST1100 declined by 4.68%, the price was trying to hold above initial resistance (bold red dotted line). We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represent top 1100 Digital Assets. The chart overwhelmed with information is at first glance difficult to read but on the chart is the most important price information, important decisive price levels, momentum, volume of trading, and crypto market breadth.
In the previous report, it was said that four Crypto Market Breadth Digital Assets Indicators (Percent members of the index with prices above 50 Days EMA) have shown the start of a bearish trend. The path of least resistance in a downtrend is to the downside. On the NWST1100 chart, we can see, that after the moving averages have completed a bearish crossover, which confirms a change in sentiment from buy on dips to sell on rallies, the price has not been able to scale above 25-day EMA since falling below it on Jul 15. The price remained inside the descending channel. NWST1100 price was trying to hold above initial resistance (bold red dotted line) which was at 900 or the 38.2% retrace of the overall swing. Resistance often becomes support once it is taken out.
Looking ahead to the next week, the indicators give us the following signals: we can see that RSI is neutral near 40, the PPO wave could change direction, PPO histogram could start sloping up in the next few days. Breadth indicator McClellan summation index and ADVP a breadth statistic based on Net Advancing Volume are declining. This set up means that at this point, there are two likelihoods of a continuing downward trend or continuation of consolidation. Price could retest the critical support of 840 points and turns around from the support levels and rises above 25-day EMA to the green Target. If bulls fail to defend this zone, the correction can deepen to the red Target.
Performance of different groups of Digital Assets (Coins and Tokens)
Looking at the table, you can see that Total (NWST1100) index declined by 4.68% in the past week.
Crypto (Digital Assets) compared with global equity
On the chart below, the performance of the average Digital Aset represented by our NWST1100 index is compared with average global equity represented by Dow Jones global index W1Dow. This year average crypto vs. W1Dow soared over 75% but over the past two months, we were observing a pullback.