Thank you for joining us for this edition of the Market’s Compass Crypto Sweet Sixteen Study, number 175 in the series. This analysis is your go-to resource for keeping tabs on the technical status of sixteen leading cryptocurrencies by market capitalization. Each week, we explore technical changes and significant shifts among individual cryptocurrencies and indexes. Subscribers can look forward to an unabridged version sent directly to their inbox, while previous editions, including our Weekly ETF Studies, are accessible through The Market’s Compass Substack blog.
In a special nod to Groundhog Day, we’re offering our free subscribers a peek at this week’s full version. Even as Punxsutawney Phil predicts six more weeks of winter, consider upgrading to a paid subscription. It’s the perfect time to delve into The Market’s Compass Crypto Sweet Sixteen Studies during these wintery weeks.
For those seeking more depth, I explain my Individual Technical Rankings on our site at www.themarketscompass.com. Head to the "crypto sweet 16" section under MC’s Technical Indicators for the full scoop.
Below, you’ll see an Excel spreadsheet detailing the weekly shifts in the technical rankings (“TR”) for each cryptocurrency, alongside the Sweet Sixteen Total Technical Ranking (“SSTTR”).
Recent Rankings: Up until January 31st, the Sweet Sixteen Total Technical Ranking (SSTTR) saw a decrease of 6.73% two weeks in a row, dropping to 450.5 after an initial rise of 21.11% to 593.
Last week, the Technical Rankings for all but five cryptocurrencies in the Sweet Sixteen declined, with one remaining unchanged. The average drop was 2.03%, an improvement from the previous week’s average loss of 6.88%. In terms of positioning: four entered the "green zone" (TRs between 35 and 50), eleven were in the "blue zone" (TRs between 15.5 and 34.5), and one stayed in the "red zone" (Matic Network), compared to the prior week with six in green and nine in blue.
The CCi30 Index, a benchmark for blockchain’s growth designed by independent experts, tracks the 30 top cryptocurrencies by market cap, excluding stable coins. More details can be found at CCi30.com.
Guiding RRG Chart Interpretation: A concise guide is available on The Market’s Compass website under MC’s Technical Indicators, where you can locate the Crypto Sweet 16 section. Additional resources and detailed interpretative guides are available at the end of this blog.
The following chart represents data over a two-week period, clearly indicated by the nodes. Though all sixteen cryptocurrencies aren’t plotted, those I regarded as particularly interesting from a technical standpoint are included.
Tron (TRX) and Cosmos (ATOM) have recently moved from the Lagging Quadrant to the Improving Quadrant. Although TRX is close to entering the Leading Quadrant with a strong Relative Strength performance, momentum slowed slightly last week. Meanwhile, Ripple (XRP) transitioned from the Leading to the Weakening Quadrant, with Solana (SOL) and ChainLink (LINK) following suit.
Two key charts below compare the Relative Strength or Weakness of the Sweet Sixteen cryptocurrencies against the CCi30 Index. A blue 55-Day Exponential Moving Average and a red 21-Day Simple Moving Average are used to clarify trends and potential crossovers.
Over the course of last week, three of the Sweet Sixteen cryptocurrencies posted gains, while thirteen saw decilnes, whereas the previous week had four rising, and twelve declining. The average percentage loss over seven days was -2.11%, but if you exclude Litecoin’s (LTC) 7.90% gain, the average loss stretches to -2.78% compared to the previous week’s -5.96%.
The DMTCF showed a slight improvement, rising to 43.75% from the prior week’s 33.04%. The TCFs act as a confirmation tool; when all eight improve on a week-over-week basis, it indicates a broader market bounce. Conversely, a decline confirms a broader market downturn. Last week, five TCFs dipped while three rose.
Finally, the CCi30 Index remains in what optimists hope is a consolidation triangle pattern. While the MACD indicates decreased momentum, it’s still in positive territory. The short-term Stochastic Momentum Index is declining, having signalled an overbought situation earlier in January. To argue for a bullish consolidation, key support at 19,860 needs to hold, while surpassing the series of lower highs marked by the red dashed line would confirm it.
All charts are courtesy of Optuma, which provides robust visualization tools for data like our Objective Technical Rankings, with cryptocurrency data provided by Kraken. Optuma offers superior RRG charts, which I highly recommend for daily insights. Learn more through these tutorials:
For a 30-day Optuma trial, visit www.optuma.com/TMC.
In-depth lessons on Pitchforks, as well as a basic guide on Technical Analysis Tools, are available on our website: www.themarketscompass.com.
