The NWST1100 index rose 8.86% during the last week. The coins, represented by the NWSC0100 index (+17.65% over the previous week, +76.61% during the last 30 days ), have led the crypto markets upward. It is likely that the Ethereum Tokens, represented by the NWSET100 index, will take the lead.
*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 continue the consolidation; the index could get stuck in a narrow range (15%) that has support in 25-days EMA. The NWST1100 chart shows that the index had fallen to 10-Days EMA, then started rising on Wednesday. The index price broke out resistance at Fibonacci retracement (23.6% – blue dashed line), which flipped to support. Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. Momentum indicators at the top show: RSI, PPO histogram (green arrow), and PPO lines were rising. The Breadth indicators at the bottom of the chart: AD Volume Line was rising, McClellan Summation Index was falling. The Summation Index is simply a running total of the McClellan Oscillator values (Net Advances advancing issues less declining issues).
The chart on the right shows other breadth indicators: All A50R lines were overbought over the previous four weeks. It’s a condition showing the high price levels.
* 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 may continue direction in the coming days. At the bottom of the chart, the Breadth indicator McClellan Summation Index may change direction in the next few days. My opinion is based on this constellation: the index price may test the Fibonacci resistance R2 (+12%), frequent pullbacks are likely.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index rose 8.86% during the last week. However, the table and the chart below show that the coins, represented by the NWSC0100 index (+13.48% over the previous week, +76.61% during the last 30 days ), have led the crypto markets upward. It is likely that Ethereum Tokens will take the lead in the next week. The chart shows that all groups of coins and tokens, represented by 2100NEWS indexes, have reported massive gains between 26% and 82% during the previous 30 days.
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 21%. The shares were a better investment for three months, but this changed seven weeks ago when crypto took the lead. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 196.9% this year, while over the last 12 months, NWST1100 was 477% 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 79.6% 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 79.6% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.