The NWST1100 index has surged by 3.98% over the previous week. Ethereum-based Tokens represented by (NWSET100) index have been the best-performing in the last thirty days (+48.85%).
*Below, we present a standardized weekly report and next week’s outlook, prepared based on the Theory Swingtum 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 last week’s assumption. “A consolidation was likely.” The NWST1100 chart shows the index price experienced consolidation, indicating profit booking by short-term traders. Momentum indicators at the top show: RSI and the PPO lines have fallen, and the Breadth indicators (at the bottom of the chart) have sloped upward.
The chart on the right shows The percentage of digital assets trading above a 50-day moving average breadth indicator: All four A50R lines have been overbought for three weeks. Signs of a comedown may be on the cards.
* 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 upsloping McClellan Summation Index, a long-term measure of market breadth, and downsloping McClellan Oscillator (moves below zero cause the Summation Index to fall). This suggests that the bullish momentum may be weakening. If we look ahead, the Momentum indicators give us the following signals in the coming days: RSI is 73 and overbought; RSI, PPO histogram, and PPO lines may change direction. Breadth indicators at the bottom of the first charts (NWST1100) may flatten. A minor dip could shake out the nervous longs and provide an opportunity for long-term investors to add to their positions. The P&F chart on the left shows Bullish Price Objective (Tentative) at 4450 points (+62%). Based on this setup, consolidation is likely; however, a test of the strong support zone and continuation of the Rally is possible.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index has surged by 3.98% over the last week. In the chart below, we can see Bitcoin, Ether, and the 2100NEWS Indices, which measure the performance of Ethereum-based tokens (NWSET100), Large caps (NWSL100), and Coins (NWSCo100). Ethereum-based Tokens represented by (NWSET100) index have been the best-performing during the previous thirty days (+48.85%).
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 15 months ago. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 38.7% over the last 12 months, while this year, NWST1100 has been 34.8% higher. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price is 15.8% 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 15.8% loss today. However, if we bought one NWST1100 daily in the previous six months, purchases are a bargain and highly profitable.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.