2100NEWS WEEKLY CRYPTO REPORT May-3

crypto


The NWST1100 index fell 1.69% from the previous week. Core (CORE), 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. Monitoring Market Sentiment and Breadth is necessary to detect early signs of trend reversals or continued strength.

Our detailed analysis of the NWST1100 chart and related market indicators reveals essential insights into the current market conditions:

  1. The analysis of the NWST1100 chart shows that the index has approached a significant resistance level, marked by a red dashed line. This juncture is crucial as the market shows signs of stabilization after a decline, suggesting a potential easing of downward pressure.
  2. Market sentiment: The Price Oscillator (PPO) lines and histogram bars showed a change in direction, hinting that the downward trend in prices might be losing momentum. This is supported by the RSI (Relative Strength Index), which remains in neutral territory but has begun to rise, signaling that the market might steer clear of an extended bearish phase.
  3. We are now focusing on the breadth indicators visible at the bottom of the NWST1100 chart. An upward trend in the Advance-Decline Line (ADVL) and the McClellan Summation Index suggests a broader market recovery. These indicators are crucial as they confirm the potential market sentiment and momentum shift.

Based on these indicators, the market has geared up to potentially breach the resistance level, pivoting towards more stable or bullish conditions.

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., tako

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 47 and rebounding from the oversold zone, hints at the potential onset of bullish sentiment. Should this upward trajectory persist, it may confirm strengthening market optimism.
  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 continue their rise; if indicators such as the Advance-Decline Line (ADVL) or the McClellan Summation Index rise, this might suggest broadening market support and could precede an uptrend.
  4. Resistance Challenges: It’s important to note that the market faces a formidable resistance area, denoted by a red dashed line. This zone has historically proven challenging, with growth faltering upon each encounter. The red arrow on the histogram emphasizes that this is the fourth attempt in the last two months to overcome the downward trend, underscoring that a bullish breakthrough is not yet a certainty.

With these indicators in mind, while certain indicators suggest a potential shift towards more favorable market conditions, significant resistance and historical challenges in breaking these levels may continue to suppress major upward movements. It seems that the likelihood of a breakthrough is small, and it is more likely that the index prices will continue to hover in the lower segment of the Keltner Channel, indicating that while some recovery may be underway, significant upward movements may be restrained by ongoing resistance.

 

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 fell 1.69% 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). Ether has outperformed other segments with a loss of 3.47% over the last thirty days.

While the broader market was experiencing a downward trend, different segments and individual cryptocurrencies exhibited varied performance dynamics. Ether was leading, and Bitcoin and indices NWWS30 and NWSBE were weakening, while the Indices NWSET100, NWSCo100, and NWSL100 were improving. 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, embodied by the Dow Jones Global W1Dow index. We draw insights into historical achievements and potential future trends by examining their performances over various timeframes.

Let’s break down the key observations and implications:

  • Historical Performance Comparison:
    • 30 Months Ago: Digital assets showcased a notable outperformance against shares in global capital markets, reaching a record high in the comparative quotient between the NWST1100 and W1Dow indexes. At this juncture, digital assets displayed a notably superior performance trajectory compared to shares on global capital markets.
    • 12 Months Ago: The advantage for digital assets became even more pronounced, with digital assets outperforming shares by a margin of 58.6%. This stark difference highlights the substantial returns that digital assets have offered over traditional shares within this timeframe.
  • Mean Reversion Opportunity:
    • Over the past 143 working days, the average quotient price, represented by a blue dashed curve, stands at 8.48, while the current spot price is 9.54. This is significantly higher than the long-term mean of 6.88.
    • 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 88.78% appreciation relative to last year’s period. With daily index investments, an investor’s stock would have seen a 50.4% uplift compared to the index’s current price.
    • Contrasting with the crypto index, the DJW, representing global capital market shares, grew by 18.99% over the past year. However, a strategy involving daily purchases would have resulted in a gain of 9.5%.
    • Expectations are rife. Digital assets purchased over the preceding 12 months at an average price of 3,716 points seem poised to offer magnified returns compared to shares.

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

Indices Revision 5-3-2024

No changes were made to the NWSL100 index based on the latest Biweekly revision. Several new mid-cap assets, including Venom, Popcat, Omni Network, etc., have been added to the NWSM200 index. Each index’s presentation provides more information about the additions and deletions for the other indices in the family.

Winning member

Congratulations to Core (CORE) 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. 

 

CORE

Core (CORE)  Website: https://coredao.org/

Core Large-cap Coin is 52nd in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSCo100

2100NEWS DA Orderbook Quality Evaluation Grade:  Poor, 14.4 (Average for Large-caps: 17.9)


Over the last week, the average market cap was $1,678.0 million, and the average daily volume was $80.5 million.

The Core is a new, independent blockchain to operate at the core of Web 3. Powered by a new consensus mechanism, Satoshi Plus, Core is a Turing-complete blockchain leveraging the Bitcoin mining hash rate and the Ethereum Virtual Machine (EVM). Satoshi Plus applies a protocol-driven validator election mechanism to combine the optimal features of Proof of Work (PoW) and Delegated Proof of Stake (DPoS) to maximize security, scalability, and decentralization. Core DAO’s mission is to grow the Core network and the Satoshi Plus ecosystem broadly.

 


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.


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    • ethereumEthereum (ETH) $ 3,137.14 0.49%
    • litecoinLitecoin (LTC) $ 84.20 0.06%