The NWST1100 index has fallen 11.09% over the last week. NWST1100 went down from one of the most significant support levels (143-Days EMA) and resumed declining. If we bought one NWST1100 every day over the last twelve months, our investment is not recording gains today.
*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 graph 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 up from resistance represented by 143-days EMA was likely. If bulls would not hold the ground, a decline to support S1 was possible” The NWST1100 chart shows the decline to S1. Bears were stronger. NWST1100 went down from a make-or-break point on one of the most significant support levels (143-Days EMA) and resumed declining. Momentum indicators at the top show: PPO lines, RSI, and the PPO histogram. These indicators and the Breadth indicators at the bottom of the chart have continued a downtrend.
The chart on the right shows The percentage of digital assets trading above a 50-days moving average breadth indicator: All four A50R lines are oversold. The graph tells us that the broad crypto markets have continued a trend down.
* 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
The waves are at least partially predictable due to their quasi-periodic nature. The area plots the McClellan Summation Index, and that’s a long-term measure of market breadth. The rhythm of the waves indicates the start of the rising part of the wave is possible. If we look ahead, the Momentum indicators give us the following signals: the RSI is 26 and oversold; RSI, PPO lines, and PPO histogram may continue upward direction by the end of the week, as the Breadth indicators at the bottom of the chart. My opinion is based on this setup: a continuation of the downtrend is likely, but a quick and sharp rebound (+20%) to significant support levels (143-Days EMA) is possible.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index has fallen 11.09% over the last week. The chart shows that Ether (-23.41%) has been the worst-performing during the previous thirty 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 two months ago; however, it is 36.2% lower now. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 72% over the last 12 months, while this year, NWST1100 was 12.89% lower. The blue curve is the average index price during the previous twelve months. We can see that the W1Dow spot price is above average; the NWST1100 spot price is lower than twelve months index average price. That means: If we bought one NWST1100 every day over the last twelve months, our investment is not recording gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.