2100NEWS WEEKLY CRYPTO REPORT Nov-29

2100news (23)



The crypto index NWST1100 has risen by 4.37% over the last week; with a leap of 147.93%, Coins represented by the NWSC100 index have shown the most favorable performance within the previous 30 days.

*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 graph 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.

After conducting a detailed examination of the NWST1100 chart, a vital metric for the cryptocurrency market, reveals several essential market dynamics and changes in market sentiment:

The NWST1100: the index has consolidated after a sharp rally, failing to surpass the 8,000 points level. The index entered a consolidation phase over the subsequent five days, reflecting a temporary pause as the market digested recent gains.

Market Sentiment (PPO & RSI): The Price Oscillator (PPO) lines turned negative, and the histogram showed a continued downward trend, signaling reduced upward momentum. The Relative Strength Index (RSI) has remained overbought toward the week’s end, emphasizing continued bullish sentiment and suggesting a possible market overheating.

Crypto Market Breadth indicators at the bottom of the chart show the Advance-Decline Line (ADVL) and McClellan Summation Index. The Advance-Decline Line (ADVL), which measures the number of advancing versus declining assets, has flattened, indicating a balance between advancing and declining cryptocurrencies. A rising McClellan Summation Index, a long-term version of the McClellan Oscillator that measures market breadth, showed an accelerated upward trend. This upward movement reflects a broadening market, with increased participation in the rally.

In summary, the NWST1100’s recent performance highlights a market rally with strong bullish momentum, despite the resistance near 8,000 points. The broadening participation of assets and rising market breadth indicators highlight underlying market strength. The consolidation phase suggests that the market is building strength for another attempt at breaking through resistance. The market appears to be gearing up for its next significant move.

According to the chart on the right, all four A50R lines were overbought, with over 85% of cryptocurrencies above their 50-day moving averages. This breadth indicator measures the percentage of digital assets trading above a 50-day moving average. 

* The percentage of digital assets trading above a specific moving average is a breadth indicator that measures internal strength or weakness in the underlying index. The chart on the right side compares the percentage of DA trading above 50 days EMA for:

  1. 100 Large-caps members of NWSL100 (top box)
  2. 1100 members of NWST1100
  3. 100 Ethereum Tokens members of NWSET100
  4. 100 Coins members of NWSCo100 (bottom box)

Outlook for this week

This report analyzes the cryptocurrency market’s short-term outlook and aims to provide insights into its potential direction. Although predicting the market’s behavior is challenging, discernible patterns in market waves offer some predictability. By examining momentum indicators, we can identify several signals that shed light on the market’s possible direction in the short term.

  1. The PPO lines may flatten, and the histogram could hover near the zero line before rebounding. This movement suggests a potential revival of bullish momentum, increasing the likelihood of upward price movements in the near term.
  2. The RSI (Relative Strength Index), with a current reading of 75 is overbought, signaling strong bullish sentiment. While this suggests further gains are possible, the market is vulnerable to short-term corrections as it approaches overextension.
  3. The Breadth indicators, evident at the bottom of the first chart (NWST1100), may continue rising. If these indicators rise, they will confirm broad market participation and support continuing the bullish trend.

In conclusion, the market’s short-term outlook appears optimistic, supported by strong momentum and widespread asset participation. As in the past week, as profit rotations occur, realized profits are expected to flow into tokens, creating opportunities for growth in this segment. Investors should focus on the NWSET100 index, as it provides insights into the performance of significant tokens, which may experience accelerated growth. At the same time, the RSI suggests a potentially overbought market, but the possibility of a continued rally exists, particularly if breadth indicators and PPO momentum signals align positively.

 

 

 

 

 

 

 

Performance of different 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 risen by 4.37% over the last week. Profit transfers have partly driven this growth into tokens, particularly those represented by the NWSET100 index, which experienced a notable uplift the previous 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). Coins represented by the NWSC100 index have outperformed other segments, with a leap of 147.93% over the last thirty days.

While the broader market is experiencing a rally, different segments, as well as individual cryptocurrencies, exhibit varied performance dynamics. Ether and indices NWSL100 and NWSCo100 were leading; and indices NWSBEand NWSET100 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 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:
    • 37 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 86.2%. This difference highlights the substantial returns that digital assets have offered over traditional equity within this timeframe.
  • Mean Reversion Opportunity:
    • Over the past 143 working days, the average quotient price, represented by a blue dashed curve, stands at 8.87, while the current spot price is 12.10. This is higher than the long-term mean of 6.83, which has increased since October.
    • 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 128.65% appreciation relative to last year’s period. With daily index investments, an investor’s stock would have seen a 49.9% uplift compared to the index’s current price. Digital assets purchased over the preceding 12 months at an average price of 5,255 points were purchased at relatively elevated levels, as they were bought during a period when markets were yielding returns of several tens of percent compared to the previous year, and prices remained above the 143-day moving average for an extended period. The strong rally in November has made even these relatively expensive purchases profitable. However, for more substantial investment potential, acquisitions should ideally be made when the market is below the 143-day moving average, as it was this past summer and continued until five weeks ago.
    • Contrasting with the crypto index, the DJW, representing global capital market shares, grew by 23.82% over the past year. However, a strategy involving daily purchases would have resulted in a gain of 9.6%.

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

 


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) $ 2,673.61 3.01%
    • litecoinLitecoin (LTC) $ 123.94 3.75%