Last week, NWST1100 soared 15.88%, the index price hit a new record high. Tokens have rebounded. Nexo (NEXO) Token is a member of the NWSL100 crypto index that made the biggest jump in our ranking over the last two weeks.
*We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represents the top 1100 Digital Assets. The information-laden chart is difficult to read at first glance but the chart shows key price information, important decisive price levels, momentum, trading volumes, and crypto market breadth.
The previous report showed that our assumption for last week had been: the sideways trend was more likely, but the index could move downward to Pivot P. The NWST1100 chart shows that assumption proved to be incorrect. The index price had hoovered during the first four days of the week then moved up to R2 and hit a new high as you can see on the left PF chart. At the top we see momentum indicators: PPO lines, RSI, and PPO histogram have changed direction over the last three days.
Outlook for this week
Looking ahead, the Momentum indicators give us the following signals: the RSI is 77 (oversold and bullish); PPO lines and PPO histogram bars may continue direction (up) in the coming days. The Breadth indicators, at the bottom of the chart, may slope positively. This constellation is the basis for my opinion: a move upward is more likely, the bullish momentum may lead the market to test the previous high (1.358 points), the index could reach R2 resistance.
Performance of different groups of Digital Assets (Coins and Tokens)
The total (NWST1100) index soared 15.88%. The table below shows, that the coins represented by the NWSC100 index have recorded the biggest gains over the last week.
Digital Assets decoupling
The breakdown of the market into groups represented by 2100NEWS DA indexes enables us to measure decoupling much more accurately than can do others who do not have the tools in the form of a full range of indexes. Over the last two months, Bitcoin and the other markets have decoupled. Their prices did not follow Bitcoin because they were providing fuel for Bitcoins rally. The chart on the right side compares the percentage of DA trading above 50 days EMA for:
- 100 Large-caps members of NWSL100 (top box)
- 1100 members of NWST1100
- 100 Ethereum Tokens members of NWSET100
- 100 Coins members of NWSCo100 (bottom box)
Over the last two months except for last week, all four A50R lines were oversold. Although the NWST1100 index price has already risen considerably, all four A50R lines show that there is still a lot of room for further growth (like the last ten days in April). The chart below shows that the Bitcoin price was rising (red trendline) in September and October while the other crypto assets were falling (Tokens green trendline). This claim was rejected over the last three days (marked with a red ellipse).
*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.
Crypto (Digital Assets) compared with global equity
With such a chart, we have already shown the superiority of crypto investments as a new investment class. For the sake of objectivity, the chart shows that crypto investments are superior over various timespans. The chart compares the performance of the average represented by our NWST1100 Digital Asset index with the average global share represented by the Dow Jones global W1Dow index. Last week a new record high was hit. The Percentage Change Marks on the chart shows that this year NWST1100 outperformed W1Dow by 112.9% while over the last 12 months, NWST1100 was 54.6% higher. The blue curve is the average index price over the last twelve months. We can see that the NWST1100 spot price and W1Dow price are above average, but the NWST1100 spot price is 59.6% higher than twelve months index average price. This means: If we bought one NWST1100 every day over the last twelve months, our investment is recording 59.6% gains today.
*The box in the middle of the chart shows the original NWST1100 price, at the bottom of the chart is W1Dow.
Indexes Revision 11-6-2020
The Bi-weekly revision update both, the amount of each asset publicly available and any additions and deletions from the indexes. On the tables below there are additions and deletions from NWS30, NWSL100, and NWSM200. As we can see on the tables Wrapped Bitcoin and Insight Chain have improved their rankings they were added to NWSL100, they were deleted from NWSM200. Fantom was deleted from NWSL100, it is a new member of NWSM200. New mid-caps are MATH, ForTube, Secret… Other additions and deletions this week for the other indexes from the family are available in each index presentation.
In order to make an appropriate peer comparison, we gauged the Nexo (NEXO) Token with 2100NEWS Digital Assets 100 Large Cap Index (NWSL100). On average (violet area chart), the relationship between NEXO and NWSL100 has shown that it was stronger. NEXO has beaten NWSL100 by 7.36% over the last three months. However, if we compare the NEXO green area graph with the orange index area graph while observing the correlation graph, the correlation graph gives us an explanation that the correlation is weak (Pearson’s correlation coefficient = 0.28). However, 90% of the time, it was moving in the same direction as the NWSL100 but it has been an ordinary representative of the NWSL100 index in terms of price changes.
*We elect the member of the NWSL100 crypto index with the biggest jump in our ranking. We will look at how the market, rates the progress of the project in case of price changes. It seems important to us whether the project is out of the ordinary tide of crypto project prices. Considering an investor’s point of view, peer comparison should be efficient and effective.
Nexo (NEXO) Website: https://www.nexo.io/
NEXO Large Cap Ethereum based Token is 76th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSTo100, NWSET100
2100NEWS DA Orderbook Quality Evaluation Grade: Poor, 12.3 (Average for Largecaps: 17.1)
Over the last week, the average market cap was 217.0 million $, the average daily volume was 2.9 million $.
Nexo delivers the World’s First Instant Crypto-backed Loans, thus resolving a crucial inefficiency for the crypto world. Up to this very moment, no alternatives existed for digital asset owners to enjoy their crypto wealth except selling them. The innovative model of Nexo brings to the crypto community the best of both worlds – retaining 100% ownership of their digital assets while having immediate access to cash. The Instant Cryptobacked Loans are an automatic, flexible, and cost-efficient way of obtaining liquidity that is secured by the value of the client’s digital assets. The whole process is completed in just a few simple clicks. No hidden fees, no capital gains taxes, no credit checks. Transparency is guaranteed through the use of blockchain technology, smart contracts and algorithmic processes executed by the Nexo Oracle. Nexo delivers the World’s First Instant Crypto-backed Loans, thus resolving a crucial inefficiency for the crypto world. Up to this very moment, no alternatives existed for digital asset owners to enjoy their crypto wealth except selling them. The innovative model of Nexo brings to the crypto community the best of both worlds – retaining 100% ownership of their digital assets while having immediate access to cash. The Instant Cryptobacked Loans are an automatic, flexible, and cost-efficient way of obtaining liquidity that is secured by the value of the client’s digital assets. The whole process is completed in just a few simple clicks. No hidden fees, no capital gains taxes, no credit checks. Transparency is guaranteed through the use of blockchain technology, smart contracts, and algorithmic processes executed by the Nexo Oracle.
*The chart below shows the NEXO compared to NWSL100 at the top, the box in the middle of the chart shows the original NEXO price, and at the bottom of the chart we see NWSL100 and the correlation between NEXO and NWSL100.