Last week, NWST1100 fell 0.75%; bears were aggressively defending the resistances (10-day EMA), so the direction was changed to downward. Amp (AMP) 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. First, we gauge the market’s crypto market 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 last week had been: a rebound and breakout from the triangle were more likely (+15%), index price might test resistance represented by 25-day EMA. The NWST1100 chart shows that the assumption proved to be incorrect. In retrospect, the NWST1100 index had tested resistances (10-day EMA), bears were aggressively defending the resistance, so the direction was changed to downward. This week the index has experienced a breakdown. The Momentum indicators at the top show: RSI, PPO histogram, PPO lines, and the Breadth indicators at the bottom of the chart have changed direction to downward.
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 (like September and October). 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
Looking ahead, the RSI is 35 (bearish); PPO histogram bars, PPO lines, RSI, may continue direction in the coming days, and the Breadth indicators, at the bottom of the chart, may flatten out. My opinion is based on this constellation: high volatility and consolidation are more likely, breadth indicators suggest that markets could again resume their downtrend to stronger support S1. Still, a massive rebound (+20%) is also possible.
Performance of various groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index fell 0.75% during the last week. Etherrum Tokens represented by NWSET100 were the best performers. The chart shows that all groups of coins and tokens, represented by 2100NEWS indexes, have experienced declines since the beginning of May.
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 six weeks ago; however, it plunged by 48%. The Percentage Change Marks on the chart show that this year NWST1100 outperformed W1Dow by 92.1%, while over the last 12 months, NWST1100 was 334% 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 51.7% 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 51.7% 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 6-18-2021
The Bi-weekly revision update both the amount of each asset publicly available and any additions and deletions from the indexes. Amp and Telcoin improved their ranking; they were added to NWSL100, so they were deleted from NWSM200. Dent, Fetch, Serum were deleted from NWSL100, and they are new members of NWSM200. New mid-caps are Mirror Protocol, Symbol, Egoras… Other additions and deletions this week for the other indexes from the family are available in each index presentation.
We gauged the AMP (AMP) Token with 2100NEWS Digital Assets 100 Large Cap Index (NWSL100) to make an appropriate peer comparison. On average (violet area chart), the relationship between AMP and NWSL100 has shown that it was more potent over the last three months. AMP has outperformed NWSL100 by 282% during the previous three months. First, however, let’s compare the AMP green area graph with the orange index area graph while observing the correlation graph. The correlation graph explains that the correlation is weak (Pearson’s correlation coefficient = 0.09). For 75% time, It was moving in the same direction as the NWSL100, so it has been a poor 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.
Amp (AMP) Website: https://amptoken.org/
AMP Large-Cap Ethereum based Token is 42nd in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSTo100, NWSET100, NWSDM100
2100NEWS DA Orderbook Quality Evaluation Grade: Poor, 10.8 (Average for Tokens: 14.6)
Over the last week, the average market cap was 3,822.6 million $, and the average daily volume was 150.3 million $.
Amp is the new digital collateral token offering instant, verifiable assurances for any value transfer. Using Amp, networks like Flexa can quickly and irreversibly secure transactions for a wide variety of asset-related use cases. Amp claims to offer a straightforward but versatile interface for verifiable collateralization through a system of collateral partitions and collateral managers. Collateral partitions can be designated to collateralize any account, application, or even transaction and carry balances directly verifiable on the Ethereum blockchain; collateral managers are smart contracts that can lock, release, and redirect collateral in these partitions as needed to support value transfer activities. Amp supports a wide variety of use cases for collateralization and introduces the concept of predefined partition strategies, enabling special capabilities such as collateral models through which tokens can be staked without ever leaving their original address.
*The chart below shows the AMP compared to NWSL100 at the top, the box in the middle of the chart shows the original AMP price, and at the bottom of the chart, we see NWSL100 and the correlation between AMP and NWSL100.