Last week, NWST1100 fell 18.8%; the index price moved down and reached pivot P. Klaytn (KLAY) is a member of the NWSL100 crypto index that made the most significant jump in our ranking over the last two weeks.
*Below, we present a standardized weekly report and next week’s outlook. 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 last week had been: a downtrend and a consolidation were more likely, index price might test if support near 25-Days EMA (5 percent fall) hold; if not, the next support was pivot P (15 percent fall). The NWST1100 chart shows that the assumption proved to be correct. Index price had tested support, represented by 25-Days EMA, support did not hold because buyers were not strong enough; however, the price moved down and then reached pivot P. Depending on the rhythm of the waves, we can expect that crypto markets will experience such pullbacks once in a month (three during last three months – red arrows). At the top, we see momentum indicators: PPO, PPO histogram, and the breadth indicators at the bottom. They continued a downward trend.
The chart on the right shows: Two A50R lines were oversold (NWST1100, NWSET100). With fall last week, tensions in the markets have dissipated, but crypto markets could remain stuck in a range like September and October 2020.
* 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
Looking ahead, the RSI is 38; PPO histogram bars, PPO lines, RSI, and the Breadth indicators, at the bottom of the chart, may change direction in the coming days. My opinion is based on this constellation: a rebound inside a trading range is more likely, index price may move near the trending line (20 percent rise).
Performance of various groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index fell 18.8% during the last week. However, the table and the chart below show that indexes topped two weeks ago. The profit booking changed into a sharp pullback. The chart shows that Ether led the markets; Coins, represented by the NWSCo100 index, were the best performing group; Bitcoin’s gain was legging during the last month.
Crypto (Digital Assets) compared with global equity
The superiority of crypto investments as a new investment class was continued. 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. Their quotient hit a record high two weeks ago. The Percentage Change Marks on the chart show that this year NWST1100 outperformed W1Dow by 152.3%, while over the last 12 months, NWST1100 was 491% higher. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price and W1Dow price are above average, but the NWST1100 spot price is 164% 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 164% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.
Indexes Revision 4-23-2021
The Bi-weekly revision update both the amount of each asset publicly available and any additions and deletions from the indexes. Klaytn, Monaco, and Nexo improved their rankings; they were added to NWSL100, so they were deleted from NWSM200. TrueFi, Maps.me, and BSCPAD were deleted from NWSL100. New mid-caps are Alien Worlds, Vectorspace AI, Fei Protocol … Other additions and deletions this week for the other indexes from the family are available in each index presentation.
We gauged the Klaytn (KLAY) with 2100NEWS Digital Assets 100 Large Cap Index (NWSL100) to make an appropriate peer comparison. On average (violet area chart), the relationship between KLAY and NWSL100 has shown that it was more potent over the last three months. KLAY has outperformed NWSL100 by 125% during the previous three months. However, let’s compare the KLAY green area graph with the orange index area graph while observing the correlation graph. The correlation graph explains that the correlation is semi-strong (Pearson’s correlation coefficient = 0.63). However, 75% of the time, it was moving in the same direction as the NWSL100, so it has been a good representative of the NWSL100 index in terms of price changes.
*We elect the member of the NWSL100 crypto index with the most significant jump in our ranking. We will look at how the market rates the progress of the project in case of price changes. It seems important to us whether the project is out of the ordinary tide of crypto project prices. Considering an investor’s point of view, peer comparison should be efficient and effective.
Klaytn (KLAY) Website: https://www.klaytn.com/
KLAY Large-Cap Coin is 65th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSCO100
2100NEWS DA Orderbook Quality Evaluation Grade: Poor, 6 (Average for Coins: 15.5)
Over the last week, the average market cap was 5.572.5 million $, and the average daily volume was 74.0 million $.
Klaytn is the token of Klaytn, the enterprise-grade, a service-centric platform of Kakao that brings a user-friendly blockchain experience to millions. It combines the best features of both public blockchains (decentralized data & control, distributed governance) and private blockchains (low latency, high scalability) via an efficient ‘hybrid’ design. Klaytn is secured by participation from numerous highly reputable brands worldwide, working together to create a reliable business platform atop a robust system of decentralized trust. Klaytn enables businesses and entrepreneurs today to capture value using blockchain technology. Klaytn is the future, designed by Ground X.
*The chart below shows the KLAY compared to NWSL100 at the top, the box in the middle of the chart shows the original KLAY price, and at the bottom of the chart, we see NWSL100 and the correlation between KLAY and NWSL100.