Over the last week, NWST1100 rose 6.15%. The coins, represented by the NWSC0100 index (+17.65% over the previous week, +97.43% during the last 30 days ), have led the crypto markets upward.
*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: markets could start a consolidation; however, the trend was upward. A pullback to 25-days EMA (-15%) followed by a sharp rebound would happen sooner or later. The NWST1100 chart shows that the index had fallen to 10-Days EMA, then started rising on Wednesday. Momentum indicators at the top show: RSI was oscillating, PPO histogram, PPO lines, and the Breadth indicators at the bottom of the chart have flattened out. The PF chart on the left shows that the index is near the target.
The chart on the right shows breadth indicators: All A50R lines were overbought. We can see sharp and fast (3 weeks) move from oversold to overbought conditions. The graph tells us that the most explosive part of the growth was done. A broad range-bound trend (30%) will follow.
* 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 75 (bullish and overbought); 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: the index price will enter a wide range bound (30%), a quick test of support, represented by 25-days EMA, is likely (-15%); the test may be followed by a sharp rebound (20%).
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index rose 6.15% during the last week. However, the table and the chart below show that the coins, represented by the NWSC0100 index (+17.65% over the previous week, +97.43% during the last 30 days ), have led the crypto markets upward. The chart shows that all groups of coins and tokens, represented by 2100NEWS indexes, have reported massive gains between 53% and 98% since the 22nd of July.
Crypto (Digital Assets) compared with global equity
The chart compares the performance of the average Digital Asset (Coins, Tokens) represented by our NWST1100 index with the average global share represented by the Dow Jones global W1Dow index. Their quotient hit a record high three months ago; however, it plunged by 26%. The shares were a better investment for four months, but this changed a month ago. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 178.3% this year, while over the last 12 months, NWST1100 was 371% 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 73.6% 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 73.6% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.