2100NEWS WEEKLY CRYPTO REPORT Jun-14

DALL·E 2024-06-18 01.52.20 - A cryptocurrency coin similar to the one in the provided image, with a detailed circuit design on its surface. In the background, there's a large digi


The NWST1100 index fell 6.54% from the previous week. Notcoin (NOT), a large-cap Non-Ethereum 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.

Our previous analysis predicted that the price of NWST110 would likely fall below the P pivot level. Our detailed analysis of the NWST1100 chart confirms this prediction. Related market indicators reveal essential insights into the current market conditions:

  1. The analysis of the NWST1100 chart shows that the index has fallen below the pivot P level but has not yet reached support level S1.
  2. Market sentiment: The Price Oscillator (PPO) lines and histogram bars showed a downward trend, suggesting sustained bearish momentum. This is supported by the RSI (Relative Strength Index), which has remained in neutral territory but has fallen, indicating that traders are wary of further declines while the market is not oversold.
  3. We are now focusing on the breadth indicators at the bottom of the NWST1100 chart. A downward trend in the Advance-Decline Line (ADVL) and the McClellan Summation Index reinforces the idea of firmly established downward momentum. These breadth indicators suggest that a broad base of cryptocurrencies have contributed to the market’s decline.

Considering these indicators, the significant event of the SEC’s approval of the Ethereum ETF has only delayed the market’s decline by providing a temporary bullish push. Now, the market has approached the lower edge of the channel, below which lies an area with very strong support.

According to the chart on the right, all four A50R lines were settled deep in the oversold territory. This condition suggests over 80% 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 38 and plummeting towards the oversold zone, suggests the market appears to be in a strong bearish phase, dominated by selling pressure.
  2. There is a possibility of a direction change in the PPO histogram. The PPO histogram may be approaching a halt in its downward trend. This pause could suggest that the downward momentum is losing steam, which might lead to a market reversal.
  3. The Breadth indicators at the bottom of the first chart (NWST1100) may start their recovery; if indicators such as the Advance-Decline Line (ADVL) or the McClellan Summation Index rise, this might suggest broadening market support and could precede a trend reversal. It is important to note that the breadth indicators are currently very low, occurring only a few days a year. Exiting such a tense state usually results in a short squeeze, meaning a rapid rebound.

With these indicators in mind, as the market approaches strong support levels, the combination of momentum and breadth indicators suggests that while bearish pressures are currently strong, a reversal could be imminent, driven by oversold conditions and the possibility of a short squeeze. Investors should closely watch these indicators for signs of a rapid rebound and adjust their strategies accordingly.

 

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 plunged by 6.54% over the last week. The chart above highlights the performance of various cryptocurrencies, such as Bitcoin, Ether, and the 2100NEWS Indices, which represent the performance of Ethereum-based tokens (NWSET100), Large caps (NWSL100), and Coins (NWSCo100). Ether has outperformed other segments, with a surge of 19.66% over the last thirty days.

While the broader market is experiencing a downtrend, different segments and individual cryptocurrencies exhibit varied performance dynamics. Bitcoin and indices NWSBE and NWS30 were leading; Ether was weakening, while indices NWSET100, NWSCo100, and NWSL100 were lagging. 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 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:
    • 31 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.
    • Twelve months ago, the advantage for digital assets became even more pronounced, with digital assets outperforming shares by a margin of 99.7%. 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 8.94, while the current spot price is 9.44. This is significantly higher than the long-term mean of 6.81.
    • 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 a 130.48% appreciation relative to last year’s period. With daily index investments, an investor’s stock would have seen a 38.7% uplift compared to the index’s current price.
    • Contrasting with the crypto index, the DJW, representing global capital market shares, grew by 15.45% over the past year. However, a strategy involving daily purchases would have resulted in a gain of 10.9%.
    • Expectations are rife. Digital assets purchased over the preceding 12 months at an average price of 4,080 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 6-14-2024

Based on the latest biweekly revision, Beam has improved its ranking and was added to the NWSL100 index. On the other hand, Akash Network was removed from the NWSL100 index. Several new mid-cap assets, including BounceBit, XAI, Portal, 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 Notcoin (NOT) for achieving a significant milestone by being recognized as the winning member of the NWSL100 crypto index with the most important 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. 

 

NOT

Notcoin (NOT) Website: https://notco.in/

NOT Large-cap Non-Ethereum based Token is 48th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSTo100, NWSOT50

2100NEWS DA Orderbook Quality Evaluation Grade:  Poor, 15.2 (Average for Large-caps: 18.0)


Over the last week, the average market cap was $1,931.0 million, and the average daily volume was $967.9 million.

Notcoin began as a viral Telegram game that onboarded many users into the Web3 ecosystem through a tap-to-earn mining mechanic. The $NOT token, serving as a community-centric currency, drives user interaction and participation by allowing users to earn $NOT through discovering Web3 products, engaging in games and challenges, and contributing value to the ecosystem through content creation and support. Additionally, Web3 builders can showcase their products to the community via Notcoin campaigns, fostering innovation. This integrated approach creates a vibrant community where users are rewarded for exploring, participating, and contributing within the Web3 space.

 


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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