The NWST1100 index fell 2.84% over the previous week; the Russian attack pushed crypto sharply lower. Frax Share (FXS) 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: a breakout from the triangle was likely (+15%), then the index price might test resistance represented by 143-day EMA. A move to Pivot S1 was possible but less likely. The NWST1100 chart shows that the Russian attack pushed stocks and crypto sharply lower, and a rebound started immediately. The Momentum indicators at the top show: RSI, PPO lines, and PPO histogram, and they changed direction to upward. The Breadth indicators at the bottom of the chart have fallen.
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 (below 30). In various measures of market breadth on the chart can be seen more clearly that a rebound is possible.
* 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. If we look ahead, the Momentum indicators give us the following signals: RSI is 40; RSI, PPO histogram, and PPO lines may continue direction up in the coming days; the Breadth indicators at the bottom of the chart may change direction. My opinion is based on this setup: a breakout from the triangle is likely (+20%), then the index price may move to pivot R1 and test resistance represented by 143-day EMA.
Performance of various groups of Digital Assets (Coins and Tokens)
We can see in the table that the total index (NWST1100) fell 2.84% during the previous week. The chart below shows Bitcoin, Ether, and the 2100NEWS DA Indexes, which measure the performance of Ethereum based tokens (NWSET100), Large caps (NWSL100), Coins (NWSCo100). Ether (+13.28%) has been the best-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 four months ago; however, it is 44% lower now. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 2.3% over the last 12 months, while this year, NWST1100 was 23.7% lower. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price is 21.8% lower than twelve months index’s average price. That means: If we bought one NWST1100 every day over the last twelve months, our investment is recording a 21.8% loss today. However, the relatively cheaper NWST1100 index gives investors good buying opportunities.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.
Indexes Revision 2-25-2022
The Bi-weekly revision updates the amount of each asset publicly available and any additions and deletions from the indexes. New mid-caps are API3, Chainbing, Rally … Additions and deletions for the other indexes from the family are available in each index presentation.
We gauged the Frax Share (FXS) 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 FXS has shown that FXS was less potent over the last two months, and FXS has plunged 24% vs. NWSL100 during the previous two months. First, let’s compare the FXS green area graph with the index (orange area graph) while observing the correlation graph. The correlation graph explains that the correlation is strong (Pearson’s correlation coefficient = 0.9. It was moving in the same direction as the NWSL100. So, it has been a good representative of the NWSL100 index regarding 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 project’s progress 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.
Frax Share (FXS) Website: https://frax.finance
Frax Share (FXS) Large-cap Coin is 88th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSCo100, NWSDM100
2100NEWS DA Orderbook Quality Evaluation Grade: Poor, 14.2 (Average for Large caps: 16.8)
Over the last week, the average market cap was 748.5 million $, and the average daily volume was 14.0 million $.
The Frax Protocol is the first fractional-algorithmic stablecoin system. Frax is open-source, permissionless, and entirely on-chain – currently implemented on Ethereum (with possible cross-chain implementations in the future). The end goal of the Frax protocol is to provide highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC. The protocol incorporates the following concepts: Fractional-Algorithmic – Frax is a unique stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio. Frax Shares (FXS) is the governance token that accrues fees, seigniorage revenue, and excess collateral value.
*The chart below shows the FXS compared to NWSL100 at the top, the box in the middle of the chart shows the original FXS price, and at the bottom of the chart, we see NWSL100 and the correlation between FXS and NWSL100.