Over the last week, NWST1100 fell 14.18%. Although the index had tested the support represented by 143-day EMA two times, the support held.
*Below, we present a standardized weekly report and next week’s outlook. We gauge the crypto market’s breadth and direction by showing charts 2100NEWS Digital Assets Total Index (NWST1100), which measures 1100 (by market capitalization) major crypto assets’ performance. 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 move downward was more likely (-12%), breadth indicators suggest that markets could again resume their downtrend to stronger support (red curve 143-day EMA) which might hold. The NWST1100 chart shows that the assumption proved to be correct as many times before. In retrospect, although the NWST1100 index had tested the support represented by 143-day EMA (red curve on the chart above) two times, the support held. Momentum indicators at the top show: RSI, PPO histogram changed direction; PPO lines have flattened, and the Breadth indicators at the bottom of the chart have continued falling.
The chart on the right shows breadth indicators: All A50R lines were oversold. Investors use oversold conditions as buying opportunities, but these oversold readings could last long (two months). However, it is prudent for investors to wait for an upturn from oversold levels, but swing traders could accumulate on dips.
* 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 39 (bearish); PPO histogram bars, PPO lines, and RSI may change direction to upward in the coming days, and the Breadth indicators, at the bottom of the chart, may flatten out. The symmetrical triangle chart pattern represents a consolidation before a breakout or a breakdown. My opinion is based on this constellation: a rebound and breakout from triangle are more likely (+15%), index price may test resistance represented by 25-day EMA.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index fell 14.18% during the last week. However, the table and the chart below show that all groups of coins and tokens, represented by 2100NEWS indexes, experienced declines in the last month.
Crypto (Digital Assets) compared with global equity
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 five weeks ago; however, it plunged by 48%. The Percentage Change Marks on the chart show that this year NWST1100 outperformed W1Dow by 89.9%, while over the last 12 months, NWST1100 was 297% 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 59.1% 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 59.1% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.