The NWST1100 index has plunged 6.57% over the previous week. PancakeSwap (CAKE) 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 NWST1100 chart shows the index price journey inside the descending channel. The index had moved to 25-Days EMA, but the resistance was strong, and the index had fallen to support S1. The index spiked to this level (red rectangular) twice in January and February. The Momentum indicators at the top show: RSI, PPO lines, and the breadth indicators at the bottom of the chart, and these indicators were in 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 extremely oversold readings (belove 10). In various measures of market breadth on the chart can be seen more clearly that crypto markets were in a 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 28 (oversold); RSI, PPO histogram, and PPO lines may change direction and start rising in the coming days. The Breadth indicators at the bottom of the chart may flatten. My opinion is based on this setup: the downtrend may last, and a move to support S2 is likely, but a rebound and move to support S1 by the end of the week is expected, too.
Performance of various groups of Digital Assets (Coins and Tokens)
We can see in the table that the total index (NWST1100) has fallen by 6.57% 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), and Coins (NWSCo100). Bitcoin (-28.01%) 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 six months ago; however, it is 43.1% lower now. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 38.3% over the last 12 months, while this year, NWST1100 was 21.6% lower. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price is 26% 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 26% loss today. Global equity (W1Dow) spot price is 11.2% 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 5-6-2022
The Bi-weekly revision updates the amount of each asset publicly available and any additions and deletions from the indexes. PancakeSwap and The Graph improved their ranking; they were added to NWSL100 and deleted from NWSM200; BORA and Sushi were deleted from NWSL100. New mid-caps are Threshold, MobileCoin, and Anyswap… Additions and deletions for the other indexes from the family are available in each index presentation.
We gauged the PancakeSwap (CAKE) Large-cap Non-Ethereum-based Token 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 CAKE has shown that CAKE was more potent over the last two months, and CAKE has beaten NWSL100 by 35% during the previous two months. First, let’s compare the CAKE 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 = 0.64. 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.
PancakeSwap (CAKE) Website: https://pancakeswap.finance/
PancakeSwap (CAKE) Large-cap Non-Ethereum-based Token is 38th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSTo100, NWSOT50
2100NEWS DA Orderbook Quality Evaluation Grade: Ordinary, 16.8 (Average for Large caps: 17.2)
Over the last week, the average market cap was 2.237.8 million $, and the average daily volume was 128.8 million $.
PancakeSwap is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. PancakeSwap uses an automated market maker (AMM) model where users trade against a liquidity pool. Such pools are filled with users’ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees. The LP tokens are called FLIP tokens. PancakeSwap also allows users to farm additional tokens – CAKE and SYRUP. On the farm, users can deposit LP tokens, locking them up in a process that rewards users with CAKE. Users can stake CAKE tokens to receive SYRUP, which will have additional functionality as governance tokens (and tickets in lotteries).
*The chart below shows the CAKE compared to NWSL100 at the top, the box in the middle of the chart shows the original CAKE price, and at the bottom of the chart, we see NWSL100 and the correlation between CAKE and NWSL100.