2100NEWS WEEKLY CRYPTO REPORT Feb-9

2100news (23)


The NWST1100 index has soared 7.98% from the previous week. Flare (FLR), a Large-cap Coin, has biweekly made 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 complex to read initially, but the chart shows essential price information, crucial decisive price levels, momentum, trading volumes, and crypto market breadth. 

Based on our previous analysis, where we predicted the NWST1100 index would likely approach the upper Keltner Channel line, we have conducted a detailed examination of the NWST1100 chart, a vital metric for the cryptocurrency market. Our thorough review of various indicators has yielded a plethora of salient observations:

  1. The analysis of the NWST1100 chart shows that the index’s performance aligns with the bullish outlook from the previous study, with the recent Golden Cross formation and breakout to the upside signaling a strong market recovery.
  2. Market sentiment: The PPO lines and PPO histogram have risen, reflecting an increase in the momentum of price changes, signaling a broader market recovery. The RSI’s upward trajectory further supports this, hinting at a strengthening market that could soon approach overbought conditions.
  3. We are shifting our focus to the Crypto Market Breadth indicators at the bottom of the NWST1100 chart. A rising Advance-Decline Line (ADVL) suggests that more individual cryptocurrencies participate in the rally. Similarly, a rising McClellan Summation Index, a long-term version of the McClellan Oscillator that measures market breadth, could indicate that the upward momentum is becoming more established and might be sustainable.

Based on these indicators, the cryptocurrency market started a rally, moving towards a potentially more bullish phase.

According to the chart on the right, the A50R lines’ positions indicate a balanced market with a positive inclination. Specifically, two lines are settled in the neutral zone but showing an upward trend, while two are nearing overbought levels. This suggests that most cryptocurrencies are trading above their 50-day moving average, pointing to a cautiously optimistic market as it enters a potentially bullish phase. This breadth indicator measures the percentage of digital assets trading above a 50-day moving average. 

*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:

  1. The top box shows the A50R lines for 100 Large-cap members of NWSL100.
  2. 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.
  3. The third box shows the A50R lines for 100 Ethereum Tokens members of NWSET100.
  4. 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.

  1. The RSI (Relative Strength Index), with an RSI reading near 70, suggests the market is nearly overbought, indicating intense buying pressure. However, such a high RSI also warns of possible market saturation, which could lead to a subsequent retraction or consolidation as traders may begin to sell off to realize profits.
  2. The PPO lines may continue rising, and the histogram may change slope to descending. If the PPO histogram begins to slope downwards, it may signal a slowdown in the momentum or a potential consolidation phase.
  3. The Breadth indicators at the bottom of the first chart (NWST1100) may continue their ascent. The potential rise in Breadth indicators, notably the McClellan Summation Index, hints at widening participation. This breadth expansion is a bullish signal, reinforcing the rally’s strength and the likelihood of its persistence.

With these indicators in mind, the market is anticipated to maintain its upward trajectory, possibly surpassing January’s peak levels. The NWST1100 index is expected to test and potentially overcome the resistance level R2, signifying a robust bullish phase should it breakthrough.

Performance of various groups of Digital Assets (Coins and Tokens) 

Investors and traders often rely on historical performance data to make informed decisions about their cryptocurrency holdings. After analyzing the data in the table, it can be seen that the overall index has soared 7.98% over the last week.

The chart above shows the performance of various cryptocurrencies, including Bitcoin, Ether, and the 2100NEWS Indices. These indices represent the performance of Ethereum-based tokens, Large caps, and Coins (NWSCo100). A retrospective view over the last thirty days indicates that Bitcoin has shown the best performance, with a gain of 3.31%.

While the broader market was experiencing a rally, different segments and individual cryptocurrencies exhibited varied performance dynamics. Bitcoin and index NWWS30 were leading, and NWSBE was weakening. Ether and index NWSET100 were lagging. NWSCo100 and NWSL100 were improving. Investors and traders might use this information to adjust their portfolios, possibly shifting focus toward assets with stronger relative momentum while being cautious about those in the Weakening quadrant.

*RRG® charts show you the relative strength and momentum of groups of digital assets. That with strong relative strength and momentum appears in the green Leading quadrant. As relative momentum fades, they typically move into the yellow Weakening quadrant. If relative strength then fades, they move into the red Lagging quadrant. Finally, when momentum picks up again, they shift into the blue Improving quadrant.

 

Crypto (Digital Assets) compared with global equity

This report offers a comprehensive analysis comparing the performance of digital assets, as signified by the NWST1100 index, to shares on global capital markets, as represented by the Dow Jones Global W1Dow index. The comparison spans various timeframes, offering insights into historical and recent performances and potential future trends.

Let’s break down the key observations and implications:

  • Historical Performance Comparison:
    • 27 Months Ago: Digital assets, represented by the NWST1100 index, were outperforming shares on capital markets, represented by the W1Dow index, with a record high quotient between the two indexes. At this juncture, digital assets displayed a notably superior performance trajectory compared to shares on global capital markets.
    • 12 Months Ago: Fast-forwarding to a year back, digital assets had a clear edge, outperforming shares by 48.4%, highlighting the potential of cryptocurrencies as a high-reward investment avenue.
  • Mean Reversion Opportunity:
    • The average quotient price over the past 143 working days is plotted as a blue dashed curve (6.47). Currently, the spot price is 7.66 and sits higher than its long-run mean, hovering around 7.22.
    • The mean reversion theory suggests that asset prices, over time, tend to revert to their historical average returns. The current average quotient price at the long-run mean could imply that digital assets are fairly valued compared to historical trends.
  • Returns Comparison:
    • The chart also presents the returns achieved with the stock generated by buying one point of the respective index daily over the past twelve months.
    • The NWST1100 Crypto Index enjoyed a 71.3% appreciation relative to last year’s period. With daily index investments, an investor’s stock would have seen a 41.9% uplift compared to the index’s current price.
    • Contrasting with the crypto index, the DJW, representing global capital market shares, grew by 14.40% over the past year. However, a strategy involving daily purchases would have resulted in a gain of 10.6%.
    • Expectations are rife as we stand the confirmed bullish trend between digital assets and global capital market shares. Digital assets purchased over the preceding 12 months at an average price of 3034 points seem poised to offer magnified returns compared to shares as we traverse this bullish phase.

*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow. 

Indices Revision 2-9-2024

Based on the latest Bi-weekly revision, Manta Network, Pyth Network, and Flare have improved their ranking and were added to the NWSL100 index. On the other hand, WEMIX, NEM, and FTX Token were removed from the NWSL100 index. Several new mid-cap assets have been added to the NWSM200 index, including AltLayer, Ondo, Dymension, etc. More information about the additions and deletions for other indices in the family is available in each index’s presentation.

Winning member

Congratulations to Flare(FLR) for achieving a significant milestone by being recognized as the winning member of the NWSL100 crypto index with the most significant leap in rank within the NWSL100 crypto index.

*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. 

FLR

Flare (FLR)

FLR Large-cap Coin is 94th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSCo100

2100NEWS DA Orderbook Quality Evaluation Grade:  Poor, 9.6 (Average for Large-caps: 17.9)


Over the last week, the average market cap was $1,017.1 million, and the average daily volume was $27.5 million.

Flare is an EVM-based Layer 1 blockchain designed to allow developers to build interoperable applications with blockchains and the internet. Flare enables new use cases and monetization models by providing decentralized access to high-integrity data. Flare’s native interoperability protocols, the State Connector and the FTSO, are secured by the network itself, allowing it to reliably deliver data from a wide variety of off-chain sources in a decentralized way. The Flare Time Series Oracle delivers highly decentralized price and data feeds to apps on Flare without relying on centralized providers.


About us

We are the new economy news hub. 2100NEWS is the professional index, data, and tools provider in the digital asset space, offering Crypto Market Intelligence, providing the perspective you can trust and equipping you with information edge you need to stay ahead. (Real-time data of token issuers and news, analysis and commentary from community.) We are very excited to contribute to the evolution of the industry and build an ecosystem around our offering (the institutional-grade data infrastructure required to enable institutional investments in digital assets). We want our contributions (Contents and Tools on 2100NEWS.com) to be useful for helping investors.


CONTACT US

CALL US ANYTIME



Latest posts



Newsletter


    • ethereumEthereum (ETH) $ 3,094.68 1.46%
    • litecoinLitecoin (LTC) $ 77.99 0.78%