The NWST1100 index has fallen 0.54% over the previous week; a Rally failed near the upper trendline again. Anchor Protocol (ANC) Token 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 move near the pivot P was likely (+6%). However, a move to Pivot S1 was possible but less likely. The NWST1100 chart shows that the index moved to Pivot P in the first half of the week, the Rally failed near the upper trendline, acting as an overhead resistance barrier, and the index has declined. The Momentum indicators at the top show: RSI, PPO lines, and PPO histogram, which have flattened out. 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 crypto markets were still in the downtrend.
* 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 start direction up in the coming days; the Breadth indicators at the bottom of the chart may flatten. The Fed‘s decision on interest rates is due Wednesday. My opinion is based on this setup: the presumed rate hike could provide temporary volatility, a new breakout attempt is possible.
Performance of various groups of Digital Assets (Coins and Tokens)
We can see in the table that the total index (NWST1100) has fallen by 0.54% 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). Bitcoin(-8.22%) 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 41.3% lower now. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 10.1% over the last 12 months, while this year, NWST1100 was 19.3% lower. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price is 22.1% 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. Global equity (W1Dow) spot price is 8.0% lower than twelve months index’s average price.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.
Indexes Revision 3-11-2022
The Bi-weekly revision updates the amount of each asset publicly available and any additions and deletions from the indexes. Anchor Protocol improved its ranking; it was added to NWSL100 and deleted from NWSM200, and WAXP was deleted from NWSL100. New mid-caps are Trust wallet token, VVS Finance, Lido DAO Token … Additions and deletions for the other indexes from the family are available in each index presentation.
To make an appropriate peer comparison, we gauged the Anchor Protocol (ANC) Token with 2100NEWS Digital Assets 100 Large Cap Index (NWSL100). On average (violet area chart), the relationship between NWSL100 and ANC has shown that ANC was was more potent over the last two months. ANC has beaten NWSL100 by 177% during the previous two months. First, let’s compare the ANC green area graph with the index (orange area graph) while observing the correlation graph. The correlation graph explains that the correlation is weak (Pearson’s correlation coefficient = -0.3. 65% of the time, it was moving in the opposite direction as the NWSL100. So, it has been a bad 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.
Anchor Protocol (ANC) Website: https://www.anchorprotocol.com/
Anchor Protocol (ANC) Large-cap Token is 62nd in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSDM100
2100NEWS DA Orderbook Quality Evaluation Grade: Poor, 14.1 (Average for Large caps: 16.8)
Over the last week, the average market cap was 1,054.4 million $, and the average daily volume was 181.2 million $.
Anchor Protocol is a lending and borrowing protocol on the Terra blockchain. It uses an over-collateralized architecture to allow users to lend, borrow and earn interest with their digital assets.
Anchor is a savings protocol on the Terra blockchain that enables fast withdrawals and pays depositors a low-volatility interest rate, which is amongst the highest among stablecoins at ~19.5%. Anchor makes deposits available to borrowers who pledge liquid-staked PoS assets, bLUNA and bETH, as security.
*The chart below shows the ANC compared to NWSL100 at the top, the box in the middle of the chart shows the original ANC price, and at the bottom of the chart, we see NWSL100 and the correlation between ANC and NWSL100.