Over the last week, NWST1100 soared 15.72%, while tokens led the crypto markets up. Bitcoin and Ether hit new all-time highs.
*We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100), representing the top 1100 Digital Assets. The information-laden chart is difficult to read initially, but the chart shows essential price information, crucial decisive price levels, momentum, trading volumes, and crypto market breadth.
The previous report showed that our assumption for the last week had been: a sideways trend and consolidation were more likely; index price could test support represented by 10-Days EMA (10 percent fall). The NWST1100 chart shows that the assumption was not correct; the index continued rising. Momentum indicators at the top show: RSI and PPO lines have changed direction; PPO histogram continued falling.
The chart on the right shows: All four A50R lines were extremely overbought, but total market A50R (NWST1100) changed direction. However, power for further growth may run out.
* The percentage of digital assets trading above a specific moving average is a breadth indicator that measures internal strength or weakness in the underlying index. The chart on the right side compares the percentage of DA trading above 50 days EMA for:
- 100 Large-caps members of NWSL100 (top box)
- 1100 members of NWST1100
- 100 Ethereum Tokens members of NWSET100
- 100 Coins members of NWSCo100 (bottom box)
Outlook for this week
If we look ahead, the Momentum indicators give us the following signals: the RSI is 72 (bullish); PPO histogram bars, PPO lines, and RSI may continue direction (down) in the coming days. The Breadth indicators, at the bottom of the chart, may change direction (down). My opinion is based on this constellation: a consolidation and move downward in a more significant sideways trend is more likely, index price could test support represented by 25-Days EMA (20 percent fall). Recent history shows that dips do not last long.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index soared 15.72% over the last week and that Tokens were the best performing digital assets the previous week. They led the crypto markets this year. However, the table and the chart below show the growth of tokens built on Ethereum (green curve NWSET100 +241.4%), they outperformed Ether, Coins, and Bitcoin)
Crypto (Digital Assets) compared with global equity
We have already shown the superiority of crypto investments as a new investment class. The chart 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. A new record high was hit last week. The Percentage Change Marks on the chart show that this year NWST1100 outperformed W1Dow by 126.2%, while during the previous 12 months, NWST1100 was 404% higher. The blue curve is the average index price in the last twelve months. We can see that the NWST1100 spot price and W1Dow price are above average, but the NWST1100 spot price is 304,5% higher than twelve months index average price. That means: If we bought one NWST1100 every day over the last twelve months, our investment is recording 304,5% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.