Over the last week, NWST1100 dropped by 2.81%, the index price has tested the support represented by 10-days EMA. The bulls controlled the index during the first four days of the week.
*We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represents the top 1100 Digital Assets. The information-laden chart is difficult to read at first glance but the chart shows key price information, important decisive price levels, momentum, trading volumes, and crypto market breadth.
The previous report showed, that our assumption for the last week had been: the next target to watch out for was R2 (7% higher), the market could test the support represented by 10-days EMA (7% lower). The NWST1100 chart shows that the assumption was true, the bulls controlled the index during the first four days of the week, then the index price has tested the support represented by 10-days EMA. At the top we see momentum indicators: PPO lines and RSI are sloping down.
Outlook for this week
Looking ahead, the Momentum indicators give us the following signals: the RSI is 58 (neutral); PPO histogram bars may continue sloping down in the coming days. At the bottom of the chart, we see the Breadth indicators that may continue falling. This constellation is the basis for my opinion: the sideways trend is more likely, the market could linger between 1100 25-days EMA (pink) and 1240 points.
Performance of different groups of Digital Assets (Coins and Tokens)
The crypto markets experienced a pullback over the last week, the table shows that the total (NWST1100) index dropped by 2.81%. The tokens that are not built on Ethereum which are represented by NWSOT50 was the weakest.
Digital Assets decoupling
The breakdown of the market into groups represented by 2100NEWS DA indexes enables us to measure decoupling accurately. Over the last four months, the tokens built on Ethereum represented by 2100NEWS DA Ethereum Based Index (NWSET100) had experienced a massive rally during the first three weeks (+27.21%), then one week Ether led the way up, so NWSBE soared (25%) and caught NWSET100. The third rotation was during August, the NWSET index has soared again. The tokens which are built on Ethereum have decoupled. Their prices did not follow Bitcoin and Ether represented by the NWSBE.
Crypto (Digital Assets) compared with global equity
The chart below compares the performance of the average represented by our NWST1100 Digital Asset index with the average global share represented by the Dow Jones global W1Dow index. We see at the top that this year, crypto investment represented by NWST1000 beat global equity by 89% while over the last 12 months NWST1100 was was 17% higher. The box in the middle of the chart shows the original NWST1100 price, at the bottom of the chart is W1Dow. The blue curve is the average index price over the last twelve months. We can see that the NWST1100 spot price and W1Dow price are above average, but the NWST1100 spot price is 48% higher than twelve months index average price. This means: If we bought one NWST1100 every day over the last twelve months, our investment is recording 48% gains today.