The NWST1100 index rose 1.31% during the previous week; it moved to the resistance R2 and witnessed aggressive profit-booking. Stacks (STX) Coin is a member of the NWSL100 crypto index, making the most significant jump in our ranking over the last two weeks.
*Below, we present a standardized weekly report and next week’s outlook, prepared based on Swingtum Theory of intelligent finance. We gauge the crypto market’s breadth and direction by showing charts 2100NEWS Digital Assets Total Index (NWST1100), which measures 1100 (by market capitalization) significant 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: Upward move in the Upper Channel was likely, the index price may test the resistance R2 (+8%), but by the end of the week, a pullback to 10-Days EMA or even 25-Days Ema was possible. The NWST1100 chart shows that the assumption proved correct, the index made a new high at $8,502 on Oct. 20, but the bulls could not sustain the breakout because NWST1100 witnessed aggressive profit-booking. The Momentum indicators at the top show: RSI and PPO histogram; they have fallen. PPO lines have flattened, as have flattened the Breadth indicators at the bottom of the chart. The chart on the right shows The percentage of digital assets trading above a 50-days moving average breadth indicator: Three A50R lines are overbought. The graph tells us that an upward trend has been in place.
* 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: RSI is 70 (bullish); PPO lines, RSI, and PPO histogram bars may change direction; the Breadth indicators, at the bottom of the chart, may start rising in the coming days. The waves are at least partially predictable due to their quasi-periodic nature. My opinion is based on this constellation: markets could continue the consolidation; the index could get stuck in a narrow range between resistance R2 (+5%) and 10-Days EMA.
Performance of various groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index rose 1.31% during the previous week. The chart shows that Bitcoin has led the crypto markets upward during the last three weeks, but as we can see on the table, the situation was changing during the previous week.
Crypto (Digital Assets) compared with global equity
The chart compares the performance of the average (Coins, Tokens) 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 months ago; however, it plunged by 15%, which means that shares were a better investment for a while, but this changed three months ago. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 210.3% this year, while over the last 12 months, NWST1100 was 439% 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 62.0% 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 62.0% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.
Indexes Revision 10-22-2021
The Bi-weekly revision updates the amount of each asset publicly available and any additions and deletions from the indexes. SKALE Network improved its ranking; it was added to NWSL100, so it was deleted from NWSM200. Nano was deleted from NWSL100. New mid-caps are Keep Network, Civic, and Spell Token… Additions and deletions for the other indexes from the family are available in each index presentation.
We gauged the Stacks (STX) Coin with 2100NEWS Digital Assets 100 Large Cap Index (NWSL100) to make an appropriate peer comparison. On average (violet area chart), the relationship between NWSL100 and STX has shown that STX was more potent over the last two months. STX has beaten NWSL100 by 40% during the previous two months. First, let’s compare the STX green area graph with the index (orange area graph) while observing the correlation graph. The correlation graph explains that the correlation is not strong (Pearson’s correlation coefficient = 0.55). It was moving in the same direction as the NWSL100, so it has been an ordinary 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. Peer comparison should be efficient and effective, considering an investor’s point of view.
Stacks (STX) Website: https://stackstoken.com/
STX Large-cap Coin is 51st in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSCo100
2100NEWS DA Orderbook Quality Evaluation Grade: Poor, 13.4 (Average for Large caps: 16.9)
Over the last week, the average market cap was 2,619.3 million $, and the average daily volume was 190.7 million $.
Stacks 2.0 is a layer-1 blockchain that connects to Bitcoin and brings smart contracts and decentralized apps to it. Smart contracts and apps developed on the Stacks platform are natively integrated with the security, stability, and economic power of Bitcoin.
*The chart below shows the STX compared to NWSL100 at the top, the box in the middle of the chart shows the original STX price, and at the bottom of the chart, we see NWSL100 and the correlation between STX and NWSL100.