Last week, NWST1100 soared 13.43%, the index price hit a new record high. The actions shifted from Bitcoin to altcoins. Coins have led the way up. Curve DAO Token (CRV) 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: an upward movement was more likely, but the pullback could be 10%. The NWST1100 chart shows that assumption proved to be correct. The index price rallied because the actions shifted from Bitcoin to altcoins. There are periodic rotations when the leader enters a consolidation while others take the lead. At the top we see momentum indicators: PPO lines, RSI, and PPO histogram have risen over the last week.
Three of four A50R lines moved to overbought territory. The current bull phase matures and the commentary turns even more bullish. NWST1100 A50R line shows that there is still room for further growth. Much more Coins and Tokens were involved in the growth, they took the lead, so an upward shift in the crypto markets is wider.
* 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:
- 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)
Outlook for this week
Looking ahead, the Momentum indicators give us the following signals: the RSI is 90 (extremely overbought 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 continue sloping positively. This constellation is the basis for my opinion: an upward movement is more likely, but fairly large and sudden pullback (10%) is increasingly likely.
Performance of different groups of Digital Assets (Coins and Tokens)
The total (NWST1100) index soared 13.43%. The table below shows, that the coins represented by the NWSC100 index have recorded the biggest gains over the last week.
Crypto (Digital Assets) compared with global equity
We have already shown the superiority of crypto investments as a new investment class. For the sake of objectivity, we review various timespans, however, 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 show that this year NWST1100 outperformed W1Dow by 144.7% while over the last 12 months, NWST1100 was 111.3% 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 82.2% 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 82.2% 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 11-20-2020
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 Curve DAO, Helium, and Swissborg have improved their rankings they were added to NWSL100, they were deleted from NWSM200. Celo, Centrality, and Gatechain Token were deleted from NWSL100, they are new members of NWSM200. New mid-caps are district0x, Keep3rV1, Axie Infinity… 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 Curve DAO Token (CRV) with 2100NEWS Digital Assets 100 Large Cap Index (NWSL100). On average (violet area chart), the relationship between CRV and NWSL100 has shown that it was weaker but CRV rebounded. NWSL100 has beaten CRV over the last three months. However, if we compare the CRV 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 = 0.41). However, 70% of the time, it was moving in the same direction as the NWSL100 but it has been a poor 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.
Curve DAO Token (CRV) Website: https://www.curve.fi/
CRV Large Cap Ethereum based Token is 64th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSTo100, NWSET100, NWSDM100
2100NEWS DA Orderbook Quality Evaluation Grade: Poor, 16.2 (Average for Largecaps: 17.1)
Over the last week, the average market cap was 99.2 million $, the average daily volume was 84.1 million $.
CRV is a governance token on the Curve platform with time-weighted voting and value accrual mechanisms.
*The chart below shows the CRV compared to NWSL100 at the top, the box in the middle of the chart shows the original CRV price, and at the bottom of the chart we see NWSL100 and the correlation between CRV and NWSL100.