The NWST1100 index has risen by 3.76% over the previous week; the index price formed a symmetrical triangle. Chain (XCN) 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: “The pivot P could be a target for an upward movement; a resumption of the downtrend was less likely.” The NWST1100 chart shows the index price formed a symmetrical triangle, which is a neutral pattern where price action grows increasingly narrow and does not lean in any direction. While the triangle itself is neutral, it may be followed by a breakout to either side—up or down. The chart shows momentum indicators: RSI, PPO histogram, PPO lines (at the top of the chart), and the breadth indicators at the bottom of the chart. RSI and PPO histogram changed direction to downward.
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 37; RSI, PPO histogram may change direction; PPO lines and the Breadth indicators at the bottom of the chart may continue rising in the coming days. My opinion is based on this setup: a move to pivot P is likely (+18%); however, a continuation of the downtrend is possible.
Performance of various groups of Digital Assets (Coins and Tokens)
We can see in the table that the total index (NWST1100) has risen by 3.76% 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 (-14.04%) 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 60% lower now. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 39.4% over the last 12 months, while this year, NWST1100 was 44.9% lower. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price is 45.3% 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 45.3% loss today. Global equity (W1Dow) spot price is 9.5% 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 6-3-2022
The Bi-weekly revision updates the amount of each asset publicly available and any additions and deletions from the indexes. Terra Luna and JUST improved their ranking; they were added to NWSL100 and deleted from NWSM200; TonCoin and Frax Share were deleted from NWSL100. New mid-caps are Alien Worlds, Fibbon Finance, and Bitcoin BEP2. Additions and deletions for the other indexes from the family are available in each index presentation.
We gauged the Chain (XCN) Large-cap 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 XCN has shown that XCN was more potent over the last two months, and XCN has beaten NWSL100 by 408% during the previous two months. First, let’s compare the XCN green area graph with the index (orange area graph) while observing the correlation graph. The correlation graph explains that the correlation is negative and weak (Pearson’s correlation coefficient = -0.47). Only 56% of the time, it was moving in the same 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.
Chain (XCN) Website: https://chain.com/
Chain (XCN) Large-cap Ethereum-based Token is 23rd in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWS30, NWSTo100, NWSET100, NWSDM100
2100NEWS DA Orderbook Quality Evaluation Grade: Ordinary, 19.8 (Average for Large caps: 17.3)
Over the last week, the average market cap was 2,816.7 million $, and the average daily volume was 93.1 million $.
Chain is a cloud blockchain infrastructure that enables organizations to build better financial services from the ground up. The Chain has launched Chain Core, a permissioned and open-source blockchain, and Sequence, its ledger as a service product. Clients can receive discounts and pay for commercial fees with Chain Tokens (XCN), participate in community protocol governance, and access premium features. Chain Protocol is a design for a shared, multi-asset, cryptographic ledger. It supports the coexistence and interoperability of multiple independent networks with different operators, sharing a common format and capabilities. Control over assets is separated from control over ledger synchronization using the principle of least authority. The Chain Protocol allows any network participant to define and issue assets by writing custom “issuance programs.” Chain Core is an enterprise software product that implements the Chain Protocol. An open-source developer edition is freely available, and Chain operates a Chain blockchain network as a freely accessible testnet.
*The chart below shows the XCN compared to NWSL100 at the top, the box in the middle of the chart shows the original XCN price, and at the bottom of the chart, we see NWSL100 and the correlation between XCN and NWSL100.