2100NEWS WEEKLY CRYPTO REPORT May-9

The NWST1100 index has soared 9.41% from the previous week. Virtuals Protocol (VIRTUAL), a large-cap Ethereum-based token, has made the most significant leap in rank within the NWSL100 crypto index biweekly.

*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:

Over the last week, the NWST1100 index surged by +9.41%, marking one of the strongest weeks in recent months. The week began in line with prior expectations for a technical pullback, but sentiment reversed sharply mid-week, catalyzing one of the largest crypto rallies in the past four years. ⚡ Key Market Event:
The standout story was Ethereum’s explosive rally, with ETH gaining over +68% in the past 30 days. The trigger was the successful implementation of the Pectra upgrade on May 7, 2025—the most significant protocol enhancement since Ethereum’s transition to Proof-of-Stake. Among its features, Pectra introduced deflationary tokenomics, turning Ethereum’s annual issuance negative at -0.53%, effectively reducing total ETH supply and reigniting investor confidence.

1. Market sentiment: The Price Oscillator (PPO) lines have crossed above the zero line, signaling confirmed bullish momentum. The PPO turned sharply positive, indicating renewed bullish momentum. The RSI (Relative Strength Index) climbed to 79.82, reaching overbought territory, signaling strong momentum and raising the likelihood of near-term consolidation.
2. We are now focusing on the breadth indicators at the bottom of the NWST1100 chart. The Advance-Decline Line (ADVL), which measures the number of advancing versus declining assets, has posted a steep rise. The McClellan Summation Index, a long-term version of the McClellan Oscillator that measures market breadth, has climbed, showing sustained broad participation.

📉 Summary

The market transitioned from a technical correction to an explosive rally, led by a historical move in Ethereum. Fundamentals and sentiment remain strong, with signs of technical exhaustion.

According to the chart on the right, all A50R indicators across all major segments (NWST1100, NWSET100, NWSL100, NWSCo100) have risen sharply, a vast majority of assets are trading above their 50-day MAs, confirming a highly bullish internal structure. 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 the Week Ahead

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 a current reading of 80, has entered classic overbought territory. However, overbought conditions do not automatically signal an imminent correction. Historical precedents, such as in November, show that RSI can remain elevated for prolonged periods during strong bull markets, sometimes for over a month before any meaningful retracement.
2. The PPO lines indicate that the market’s momentum may continue rising. The PPO histogram may stop rising, the upper phase of the momentum wave may be reaching its limit, hinting at possible consolidation, but it is too early to predict a complete reversal. Continued gains remain possible, especially if the rally transitions into a more volatile, consolidation-driven advance rather than a sharp correction.
3. The Breadth indicators at the bottom of the first chart (NWST1100), which reflect the participation of assets in the market movement, may rise. Still, overextension raises the probability of a pause or correction.

📌 Target and Scenario Considerations:
Strong rallies often extend toward the Pivot R2 level, and the next significant resistance target is near 7,400 points, highlighted by the red horizontal line on the chart. This area sits slightly above Pivot R2 and typically represents a zone where rallies reverse. However, it remains uncertain whether this target will be achieved in the upcoming week or if the market will require additional time, potentially entering a volatile, range-bound phase.

📍 Key Levels to Watch:

• Support: 6800 Pivot R1 / 6700 (near-term EMA supports)

• Resistance/Target: 7400 (Pivot R2 zone and historical resistance area)

In conclusion,

The crypto market remains powerfully bullish, but short-term caution is warranted. The recent surge may evolve into a swift final rally toward the 7,400 target or a more volatile phase characterized by more minor pullbacks and slower gains. Momentum and breadth remain strong, but monitoring for PPO histogram reversal and RSI cooling is critical to identifying when the rally’s peak phase has concluded.

Investors and traders often rely on historical performance data to make informed decisions about their cryptocurrency holdings. After analyzing the data in the table, a broad-based rally was defined for the week. The overall index has leaped 9.41% over the last week. The accompanying chart highlights the performance of key cryptocurrencies, including Bitcoin and Ether, alongside the 2100NEWS Indices, which track Ethereum-based tokens (NWSET100), large caps (NWSL100), and coins (NWSCo100). The clear standout was Ether, which delivered a spectacular +68.62% gain over the past 30 days, significantly outperforming all other segments and driving much of the market’s recent momentum.

While the broader market has experienced a rally, different segments and individual cryptocurrencies exhibit different performance dynamics.

Performance Trends by Market Segment:

✔ Ether led the market with exceptional gains,  

✔ NWSET100 (Ethereum-based tokens) improved,  showing relative strength.
✔ Bitcoin and NWSBE weakened, indicating declining strength.

✔  NWS30, NWSCo100 (Coins), and NWSL100 (Large Caps) lagged.

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 time frames.

Let’s break down the key observations and implications:

• Historical Performance Comparison:
  • 42 Months Ago: Digital assets vastly outperformed global equities in global capital markets, reaching a record high in the comparative quotient between the NWST1100 and W1Dow index.
  • From twelve months ago to the Present, digital assets have outperformed equities by 18.2%, reflecting a significant rebound in the crypto sector.
• Mean Reversion Opportunity:
  • The average quotient price, represented by a blue dashed curve, has been 10.05 over the past 143 working days, while the current spot price is 10.99. This is higher than the long-term mean of 7.84, 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 (12-month Accumulation Method) & Strategic Investment Timing:
  • The chart also presents the returns achieved by the simplified index-based accumulation approach—buying one index point per day over 12 months—to simulate a mechanical exposure build-up. While this method is not equivalent to classical dollar-cost averaging (which involves investing a fixed amount of capital daily), it offers a consistent benchmark to compare historical costs and returns. The NWST1100 Crypto Index has risen by 27.79% from twelve months ago. With daily index investments, an investor’s stock price would have resulted in a gain of 15.3% on the current index price, despite unprofitable purchases due to high entry prices during a prolonged market uptrend when prices remained above the 143-day moving average for an extended period.
  • The DJW, representing global capital market shares, grew by 8.14% over the past twelve months. However, a daily purchase strategy would have resulted in a 2.0% gain.
• Conclusion:
  

  The recent rally underscores the importance of following market swings in crypto investing. Just a month ago, our weekly report highlighted a potential reversal zone—signaled by the red ellipses on the NWST1100 chart—which has now fully materialized into one of the strongest rallies in years, led by Ethereum’s historic Pectra upgrade. This validates our earlier observation that market structure and swing analysis are critical for identifying high-probability entry points. Once again, crypto markets demonstrated that the best opportunities often arise when sentiment is weakest, providing lower valuations, better entry points, and higher potential for future returns.

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

Indices Revision 5-9-2025

Based on the latest biweekly revision, Virtuals Protocol, Pudgy Penguins, and FLOKI improved their ranking and were added to the NWSL100 index. On the other hand, Conflux, Movement, and Fantom were removed from the NWSL100 index. Several new mid-cap assets, including Grass, Pundi X, Maple Finance, etc., have been added to the NWSM200 index. Each index’s presentation provides more information about the additions and deletions for other indices in the family.

Winning member

Congratulations to Virtuals Protocol (VIRTUAL) on achieving a significant milestone: being recognized as the winning member of the NWSL100 crypto index, which represents the most crucial leap in rank within the 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. 

Virtuals Protocol (VIRTUAL)   https://app.virtuals.io/geneses

VIRTUAL Ethereum-based Token is 70th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSET100, NWSTo100, NWSDM100

2100NEWS DA Orderbook Quality Evaluation Grade:  Poor, 13.3 (Average for Large-caps: 17.6)

Over the last week, the average market cap was $1,075.4 million, and the average daily volume was $516.8 million.

Virtuals Protocol is an innovative cryptocurrency that aims to revolutionize virtual interactions through its AI and Metaverse protocol. Serving as the infrastructure layer for co-owned, human-curated, plug-and-play gaming AIs, Virtuals Protocol is at the forefront of integrating artificial intelligence with immersive virtual environments. The protocol is designed to facilitate seamless virtual interactions, making it a pivotal player in the burgeoning Metaverse space. By leveraging AI, Virtuals Protocol enhances user experiences in virtual worlds, enabling more dynamic and interactive environments. This makes it particularly appealing for developers and users interested in the future of digital interactions.