2100NEWS WEEKLY CRYPTO REPORT Apr-19

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The NWST1100 index dropped 4.61% from the previous week. dYdX (DYDX), a large-cap Ethereum-based token, 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. Monitoring Market Sentiment and Breadth is necessary to detect early signs of trend reversals or continued strength.

Based on our previous analysis, The detailed examination of the NWST1100 index has revealed that the market’s recent movements align with earlier analyses predicting a potential reversal. Our thorough review of various indicators has yielded a plethora of salient observations:

  1. The analysis of the NWST1100 chart shows that the index approached a critical support level over the weekend, possibly due to market reactions to geopolitical tensions between Iran and Israel. His sharp decline was met with a strong rebound. The rebound suggests the market’s resilience and that Friday’s significant movements, spurred by the Bitcoin halving anticipation, prevailed. The fact that the index only briefly dipped below the critical support level indicated by a red dashed line and recovered in under a week could indicate the market was gaining momentum for expected growth.
  2. Market sentiment: The fall of the PPO lines contrasting with the rise of the histogram bars might suggest that while the downward price momentum is present, it may be losing steam, hinting at a potential change in direction. The RSI (Relative Strength Index), holding in neutral territory and starting to climb, implies that the market might not be heading into a prolonged bearish phase.
  3. We are shifting our focus to the Crypto Market Breadth indicators at the bottom of the NWST1100 chart. A rise in the Advance-Decline Line (ADVL) and the McClellan Summation Index reinforces the possibility of a trend shift, with market breadth indicators supporting this view.

Based on these indicators, the quick recovery near the S2 support level and the indicators’ observations point to a market responsive to structural events like the Bitcoin halving and geopolitical developments. The entry of buyers at perceived lower prices could signal a shift in investor sentiment towards a more bullish outlook.

According to the chart on the right, all four A50R lines were settled in the oversold territory. This condition suggests that a significant number of cryptocurrencies are trading below their 50-day moving averages. 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 of 39 and rebounding from the oversold zone, could suggest the beginning of a bullish sentiment if it continues an upward trend.
  2. The behavior of the PPO lines and histogram are essential indicators of market momentum. The PPO histogram is approaching the zero line, suggesting bullish momentum is building. This shift from previous bearish tendencies could signal the start of more sustained upward price movements.
  3. The Breadth indicators at the bottom of the first chart (NWST1100) may halt their descent; if indicators such as the Advance-Decline Line (ADVL) or the McClellan Summation Index start rising, this might suggest broadening market support and could precede an uptrend.

With these indicators in mind, the signals from the RSI and PPO can be critical to decision-making. Given these factors, the NWST1100 index is likely poised for upward movement. Key to this prediction is the index’s behavior around the pivot point (P). Should it break above this level, it would confirm a bullish trend backed by increasing market momentum and investor confidence.

 

Investors and traders often rely on historical performance data to make informed decisions about their cryptocurrency holdings. After analyzing the data in the table, the overall index dropped 4.61% over the last week.

The chart above shows the performance of various cryptocurrencies, including Bitcoin, Ether, and the 2100NEWS Indices, which represent the performance of Ethereum-based tokens, Large caps, and Coins (NWSCo100). Bitcoin has outperformed other segments with a gain of 1.40% over the last thirty days.

While the broader market was experiencing a sideways trend, different segments, and individual cryptocurrencies exhibited varied performance dynamics. Bitcoin, Ether, and indices NWWS30 and NWSBE were leading, while the Indices NWSET100, NWSCo100, and NWSL100 were lagging. Investors and traders might use this information to adjust their portfolios.

*RRG® charts show the relative strength and momentum of groups of digital assets. Those with strong relative strength and momentum appear 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:
    • 29 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: a year ago, digital assets had a clear edge, outperforming shares by  60.6%. This performance data accentuates the heightened returns digital assets offered over shares in the specified duration.
  • Mean Reversion Opportunity:
    • The average quotient price over the past 143 working days is plotted as a blue dashed curve (8.28). The spot price is 9.95, higher than its long-run mean, hovering around 6.94.
    • The mean reversion theory suggests that asset prices, over time, tend to revert to their historical average returns. The current average quotient price above the long-run mean could imply that digital assets are currently highly 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 an 82.42% appreciation relative to last year’s period. With daily index investments, an investor’s stock would have seen a 53.4% uplift compared to the index’s current price.
    • Contrasting with the crypto index, the DJW, representing global capital market shares, grew by 12.92% over the past year. However, a strategy involving daily purchases would have resulted in a gain of 6.4%.
    • 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 3,615 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 4-19-2024

Based on the latest Biweekly revision, Ethena dYdx, Wormhole, ZEEBU, Theta Fuel, and Core have improved their ranking and were added to the NWSL100 index. On the other hand, 0x Protocol, Oasiis Network, Manta Network, Dymension, WOO, and IOTA were removed from the NWSL100 index. Several new mid-cap assets, including Saga, Multibi, Request, etc., have been added to the NWSM200 index. More information about the additions and deletions for other indices in the family is available in each index’s presentation.

Winning member

Congratulations to dYdX (DYDX) 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. 

 

DYDX

dYdX (DYDX)  Website: https://www.dydx.foundation/

DYDX Large-cap Ethereum-based Token is 67th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSTo100, NWSET100

2100NEWS DA Orderbook Quality Evaluation Grade:  Ordinary, 17.8 (Average for Large-caps: 17.9)


Over the last week, the average market cap was $1,056.8 million, and the average daily volume was $7.0 million.

DYDX is a governance token that allows the dYdX community to govern the dYdX Layer 2 Protocol (“the protocol”). By enabling shared control of the Protocol, DYDX will allow traders, liquidity providers, and partners of dYdX to work collectively toward an enhanced Protocol. DYDX enables a robust ecosystem around governance, rewards, and staking — each designed to drive future growth and decentralization of dYdX, resulting in a better user experience. Staking pools are designed to promote liquidity and safety on the Protocol. Rewards programs for trading, liquidity providing, and past usage of dYdX will help drive growth and adoption of dYdX.

 


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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.


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