The NWST1100 index has risen 0.60% from the previous week. Fetch.ai (FET), a Large-cap Ethereum-based Token, is biweekly making the most significant leap in rank within the NWSL100 crypto index.
*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 chart shows essential price information, crucial decisive price levels, momentum, trading volumes, and crypto market breadth.
Based on the previous report, it was predicted that the cryptocurrency market would continue to trade sideways. Analyzing the NWST1100 chart, a critical benchmark index, by examining various indicators to gain insights into the prevailing market sentiment and breadth has revealed several key points:
- Observing the NWST1100 index price movement, we note a consolidation. This suggests that the market has been trading within a relatively narrow range, indicating a lack of a clear trend in either direction.
- Market sentiment: Market sentiment analysis reveals several noteworthy points. The Percentage Price Oscillator (PPO) lines have slightly risen, indicating a potential stabilization or pause in the price movement. The flattening of the PPO histogram suggests that the momentum of price changes may be slowing down, which can be a sign of consolidation. The RSI has had an inconsistent trajectory, indicating that market sentiment may be mixed.
- We are shifting our focus to the Crypto Market Breadth indicators at the bottom of the NWST1100 chart. The change in the direction of the Advance-Decline Line (ADVL), which reflects the difference between the number of advancing and declining cryptocurrencies, where it has started falling again, could indicate a shift in market breadth. A falling ADVL suggests there may be more declining cryptocurrencies than advancing ones, which could impact overall market sentiment. However, the flattening of the McClellan Summation Index, with the possibility of it starting to rise, suggests that there might be some underlying positive developments in the market.
Considering these insights, it’s clear that the current sentiment in the cryptocurrency market is leaning towards change, with consolidation being witnessed. However, the PPO histogram and RSI rebound could indicate that investors are regaining confidence.
The chart on the right shows that all four A50R lines are currently oversold. This breadth indicator measures the percentage of digital assets trading above a 50-day moving average. The current oversold condition suggests that a substantial portion (over 85%) of the cryptocurrency market is presently trading below its 50-day EMA (Exponential Moving Average). As a result, some market participants may see this as an opportunity to buy at potentially discounted prices. In contrast, others may approach it cautiously, considering the overall sentiment in the market.
*This breadth indicator is essential in measuring the internal strength or weakness of the underlying index. Looking at the chart on the right side, we can see the A50R lines for four different categories of digital assets:
- The top box shows the A50R lines for 100 Large-cap members of NWSL100.
- The middle box displays the A50R lines for 1100 members of NWST1100, which is the Total Index measuring the performance of significant crypto assets based on market capitalization.
- The third box shows the A50R lines for 100 Ethereum Tokens members of NWSET100.
- The bottom box represents the A50R lines for 100 Coins members of NWSCo100.
Outlook for this week
This report aims to provide insights into the cryptocurrency market’s near-term outlook. While complete predictability remains challenging, the market waves show some degree of predictability with discernible patterns in market behavior. By examining momentum indicators, several signals emerge that offer insights into the potential direction of the market in the short term.
- Recently, the market has experienced a consolidation after a decline, leading to the testing of key support levels again. This price action provides critical clues about the market sentiment and potential future trends. Support levels often act as areas where buying interest may increase.
- The RSI (Relative Strength Index) currently stands at 37, indicating a moderate level of selling pressure in the market. This RSI reading offers insights into the equilibrium between buying and selling forces.
- The Percentage Price Oscillator (PPO) histogram appears to be potentially turning upward. A rising PPO histogram can signal a strengthening momentum, suggesting the possibility of an evolving trend. The PPO, a momentum indicator tracking the percentage difference between two moving averages, may continue its ascent.
- The Breadth indicators at the bottom of the first chart (NWST1100) may change direction. The McClellan Summation Index is a long-term market breadth indicator relying on the McClellan Oscillator. The oscillator bars above zero suggest a bullish momentum, indicating that the market breadth may favor increasing assets. This bearish pressure is anticipated to reach a level in a few days where trend reversals occurred in prior instances.
Considering this analysis, there are signs of a bottoming process, a potential trend reversal, and the beginning of an uptrend. The crypto markets will likely experience a rebound after undergoing a swift test of the support level represented by the pivot point labeled as “S1.” At a significant technical level, this pivot point is expected to act as a potential platform for a market recovery.
Performance of various groups of Digital Assets (Coins and Tokens)
After analyzing the data in the table, the overall index NWST1100 has risen by 0.60% over the past week. The accompanying chart illustrates the performance of several cryptocurrencies, including Bitcoin and Ether, as well as key 2100NEWS Indices, which measure the performance of tracking different segments of the market: Ethereum-based tokens (NWSET100), Large caps (NWSL100), and Coins (NWSCo100). A retrospective view over the last thirty days indicates that Bitcoin has exhibited the most favorable performance. However, this performance has still decreased by 12.67% over this period.
Crypto (Digital Assets) compared with global equity
These comparisons provide insights into the relative performance of digital assets and traditional stocks over different time periods.
The comparison highlights the performance differences between digital assets (coins, tokens) and traditional stocks; the NWST1100 represents digital assets, while the Dow Jones Global W1Dow index represents traditional stocks. Here are the key observations:
- Historical Performance Comparison:
- 22 Months Ago: Digital assets, represented by the NWST1100 index, were outperforming traditional stocks, represented by the W1Dow index, with a record high quotient between the two indexes. This suggests that investing in digital assets was more profitable during that period compared to traditional stocks.
- 12 Months Ago: However, over the past 12 months, digital assets have lagged behind traditional stocks by 15.4%. This indicates that conventional stocks have delivered better returns than digital assets during this specific time frame.
- Recent Shift in Performance:
- In the current year, there has been a noticeable shift in performance, with digital assets outperforming traditional stocks by a significant margin of 17.9%. This suggests a potential resurgence in the performance of digital assets and a change in investor sentiment toward the cryptocurrency market.
- Mean Reversion Opportunity:
- The chart includes a blue dashed curve representing the average quotient price over 143 working days. This average has been lower than the long-run mean at 7.93. This observation hints at a potential buying opportunity for digital assets based on the mean reversion theory.
- The mean reversion theory suggests that asset prices, over time, tend to revert to their historical average returns. The current average quotient prices below the long-run mean could imply that digital assets are currently undervalued compared to historical trends.
- Returns Comparison:
- The chart also presents the returns achieved with the stock price generated by buying one point of the respective index daily over the past twelve months.
- The NWST1100 Crypto Index experienced a 1.5% loss compared to a year ago. Additionally, the purchased stock of the index achieved a 3.6% decrease compared to the index’s current price.
- In contrast, the DJW Capital Index (traditional stocks) experienced a 10.2% gain compared to a year ago. It achieved a 5.8% return on the purchased stock of the index based on daily purchases.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.
Indices Revision 9-8-2023
Based on the latest Bi-weekly revision, Fetch and SafePal have improved their ranking and were added to the NWSL100 index; they were previously included in the NWSM200 index. On the other hand, Nexo and Ankr Network were removed from the NWSL100 index. Several new mid-cap assets have been added to the indices, including CyberConnect, Statter Network, TOMI, etc. More information about the additions and deletions for other indices in the family is available in each index’s presentation.
Congratulations to Fetch.ai (FET) for achieving a remarkable milestone as the winning member of the NWSL100 crypto index with the most significant leap in rank within the NWSL100 crypto index. Let’s delve into the details of its performance:
- Outperformance in the Last Ten Weeks: Fetch.ai (FET) has displayed remarkable growth by substantially outperforming the 2100NEWS Digital Assets 100 Large Cap Index (NWSL100). Over the last ten weeks, FET has outperformed the NWSL100 index by an impressive 35%, a trend clearly depicted by the violet area chart.
- FET vs. NWSL100: A comparison of FET‘s performance with the NWSL100 index reveals interesting insights. The green area graph represents FET‘s performance, while the orange area graph illustrates the index’s performance. Notably, there has been a weak correlation between FET and NWSL100, with a Pearson’s correlation coefficient of 0.12. FET has moved in the same direction as the index about 90% of the time.
- Divergence in Price Changes: Despite the tendency to move in tandem with NWSL100 most of the time, FET has not been a reliable representative of the index regarding price changes. This suggests that FET‘s price movements have not fully aligned with the broader market represented by NWSL100. This divergence indicates that FET‘s price dynamics have been influenced by other factors or unique market conditions, setting it apart from the general trends observed in the market.
*We elect the member of the NWSL100 crypto index with the most significant jump in our ranking. We will examine 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.
Fetch.ai (FET) Website: https://fetch.ai/
FET Large-cap Ethereum-based Token is 89th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSTo100, NWSET100
2100NEWS DA Orderbook Quality Evaluation Grade: Ordinary, 17.7 (Average for Large-caps: 18.5)
Over the last week, the average market cap was $229.8 million, and the average daily volume was $37.4 million.
Fetch.ai is a platform that aims to connect Internet of Things (IoT) devices and algorithms to enable collective learning. It was launched in 2017 by a team based in Cambridge, UK. Fetch.ai is built on a high-throughput sharded ledger and offers smart contract capabilities to deploy machine learning and artificial intelligence solutions for decentralized problem-solving. These open-source tools are designed to help users create ecosystem infrastructure and deploy commercial models.
*The chart below shows the FET compared to NWSL100 at the top, the box in the middle of the chart shows the original price, and at the bottom, we see NWSL100 and the correlation between FET and NWSL100.