Last week, NWST1100 decreased by 0.78%. Crypto markets were hovering near the lower trendline. Elrond(ERD) Token is a member of the NWSL100 crypto index that made the biggest jump in our ranking in 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: a more likely course was a move to the 750 points. The NWST1100 chart shows that the index moved down but during the last five days of the week, the index price was hovering near the lower trendline. The bar graph on the right, which represents the volume, shows at this level the largest bar, that we denoted by “Accumulation”. This means that despite falling prices, bulls are strong and they were accumulating their longs and building a long position. The Symmetrical triangle chart pattern was forming.
Outlook for this week
Looking ahead, the Momentum indicators give us the following signals: the RSI is 44 (neutral); PPO lines and the Breadth indicators, at the bottom of the chart, may continue falling in the coming days. Similar to the last outlook: Critical short term support levels are considered to be the lower trend line (red) and the support level represented by the 143-day EMA (working days). The main question is: “Will support at 750 points hold or will it fall?” If the price of the NWST1100 falls at support, we expect the index to fall to as low as 700 points. This set up is the basis for my opinion: a more likely course for the next week is a move to the 750 points. If the supports represented by the 143-day EMA hold, a quick rebound will follow.
Performance of different groups of Digital Assets (Coins and Tokens) – Digital Assets decoupling
The largest markets continued falling over the last week. The total (NWST1100) index decreased by 0.77%. On the table above we can see, that mid and small caps tokens (NWSM200, NWSS300, NWSTo100, NWSET100, NWSOT50) recorded significantly larger gains over the last two months (3 MTD column), mid and small caps tokens have decoupled. Their prices did not follow Bitcoin and Ether represented by the NWSBE nor their prices did not follow the total market represented by the NWST1100 index.
Crypto (Digital Assets) compared with global equity
The chart below compares the performance of the average represented by our NWST1100 Digital Asset index with the average global share represented by Dow Jones global W1Dow index. This year the NWST1100 outperformed W1Dow twice by 60%. The first wave up was an extended Christmas rally, then the pair suffered a collapse caused by the corona pandemic, and the crypto markets had fallen more than the equity markets and lost their advantage. Since March 18th NWST1100 vs. W1Dow pair had rebounded and peaked eight weeks ago. This year, crypto investment represented by NWST1000 beat global equity by 42% while over the last 12 months NWST1100 was 25% lower. The box in the middle of the chart shows the original NWST1100 price, at the bottom of the chart is W1Dow. The blue curve is the average index price over the last twelve months. We can see that the NWST1100 price and W1Dow price are above average, but the NWST1000 average is 25.06% lower than 12 months ago.
Indexes Revision 7-3-2020
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 Compound and Elrond Network have improved their rankings they were added to NWSL100, Elrond Network was deleted from NWSM200. Seele-N and Streamr DATAcoin were deleted from NWSL100. Streamr DATAcoin is a new member of NWSM200. New mid-caps are Balancer, Haven Protocol, Molecular Future … Other additions and deletions this week for the other indexes from the family are available in each index presentation.
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. In order to make appropriate peer comparison, we gauged the Elrond (ERD) Token with 2100NEWS Digital Assets 100 Large Cap Index (NWSL100). In the chart below, we see the ERD compared to NWSL100 at the top, the box in the middle of the chart shows the original ERD price, and at the bottom of the chart we see NWSL100 and the correlation between ERD and NWSL100. On average (violet area chart), the relationship between ERD and NWSL100 has shown that it was stronger during the rally over the last eleven weeks. ERD has beaten NWSL100 by 452 % in the last three months. However, if we compare the ERD 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 = 0.62). ). For 75% of the time, it was moving in the same direction as the NWSL100. CHSB grew faster during the rally phase. It has been therefore a poor representative of the NWSL100 index in terms of price changes.
Elrond (ERD) Website: https://www.elrond.com/
CHSB Large-cap Non-Ethereum based Token is 85th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSTo100, NWSOT50, NWSDM100
2100NEWS DA Orderbook Quality Evaluation Grade: Poor: 10.3 (Average for Largecaps: 14.8)
Over the last week, the average market cap was 60.1 million $, the average daily volume was 14.8 million $.
Elrond is a novel architecture that goes beyond state-of-the-art by introducing a genuine State Sharding scheme for practical scalability, eliminating energy and computational waste while ensuring distributed fairness through a Secure Proof of Stake (SPoS) consensus mechanism. Having a strong focus on security, Elrond’s network is built to ensure resistance to known security problems like Sybil attack, Rogue-key attack, Nothing at Stake attack, and others. In an ecosystem that strives for interconnectivity, Elrond’s solution for smart contracts offers an EVM compliant engine to ensure interoperability by design.