In the past week, the NWST1100 was undergoing some really massive bearish action, triggered by Coronavirus. The index was making one of the largest price leaps in its lifespan and plunged by 40.24%. Ren (REN) is the NWSL100 crypto index member which made the biggest jump in our ranking last two weeks.
*We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represent the top 1100 Digital Assets. The chart overwhelmed with information is at first glance difficult to read but on the chart is the most important price information, important decisive price levels, momentum, volume of trading, and crypto market breadth.
In the previous report, it was said, for the past week our assumption had been: the bottoming process is expected, but we could see an intraday drop of up to 650 points followed by an immediate rebound. Unfortunately, I was wrong. On the NWST1100 chart above, we can see, the worst of the bearish scenario has happened. Tensions have been accumulating in the global economy for a long time. Therefore, the emergence of the virus and how the authorities reacted to it was only the culmination. The situation is very similar to that of 2008, back then the ultimate trigger was Lehman Brothers Bank, and this time it was Trump’s travel ban.
These days, crypto has shown itself to react to an impending recession just like an average financial investment class. The fairy tales that have been told by promoters in recent years: that crypto is a stable store of value, a safe haven that eliminates the “failures” of the financial system, have shattered and gone to the dump of history.
Outlook for this week
Looking ahead to the week: The indicators give us the following signals: we can see that RSI is 14 – bearish and oversold, PPO. PPO histogram bars and Breadth indicators are sloping down. This set up is the basis for my opinion: Just like the first week of October 2008 on the financial markets, this week is likely to be extremely volatile, full of abrupt turnarounds, with up to 30 percent rebounds and further falls. The bottom is unlikely to be reached yet.
Performance of different groups of Digital Assets (Coins and Tokens)
Looking at the table, you can see crypto markets experienced a huge selloff last weeks. The total (NWST1100) index plunged by 40.24% in the past week.
Crypto (Digital Assets) compared with global equity
On the chart below, the performance of the average Digital Aset represented by our NWST1100 index is compared with the average global equity represented by Dow Jones global index W1Dow. In the second half of the last year, crypto has fallen over 50% vs. global equity. This year the NWST1100 had beaten W1Dow by 60% in January then pair experienced pullback (-35%). In the last week’s collapse, crypto markets have fallen more than equity and lost all their advantage form the beginning of the year.
Indexes Revision 3-13-2020
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 NWSL100, and NWSM200. As we can see on the tables TAGZ5 and Breezecoin have improved their rankings they were added to NWSL100 and deleted from NWSM200. BitMax Token and WAX were deleted from NWSL100. They are new members of NWSM200. New mid-caps are Baer Chain, WazirX, INO COIN. Other additions and deletions this week for the other indexes from the family are available in each index presentation.
We select the member in the NWSL100 crypto index with the biggest jump in our ranking. Considering an investor’s point of view, peer comparison should be efficient and effective. To make appropriate peer comparison we gauged the Ren Token (REN ) with 2100NEWS Digital Assets 100 Large Cap Index (NWSL100). Looking at the chart below, at the top we can see the REN vs. NWSL100, in the middle of the chart is the original REN price, at the bottom of the chart are NWSL100 and correlation between REN and NWSL100. Purple area graph shows, REN has beaten NWSL100 by 59% in the last four months. However, the correlation graph gives us an explanation that the correlation is strong (Pearsons correlation coefficient = 0.78). For 92% of the time, it was moving in the same direction as the NWSL100. So, it has been an excellent representative of the NWSL100 index in terms of price changes.
Ren (REN) Website: https://renproject.io/
REN Large-cap Ethereum based token is 77th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSTo100, NWSET100, NWSDM100
2100NEWS DA Orderbook Quality Evaluation Grade: Good: 17.1 (Average for Large caps: 13.7)
Over the past week, the average market cap was 52.4 million $, average daily volume was 7.8 million $.
Ren is an open protocol meant to enable the permissionless and private transfer of value between any blockchain. Ren’s core product, RenVM, is focused on bringing interoperability to decentralized finance (DeFi).