I have a confession to make. Most of you know me as this Bitcoin maximalist type who doesn't care much about altcoins and that may be true to an extent but today I am going to tell you otherwise. So why on earth am I talking about a small cap altcoin? Here's the thing. Decentraland (MANA) caught my eyes when it got picked up by the BBC. I looked at it and fell in love with it on first sight. Why? I'll tell you why. This is where we are headed.
If you think about it, we are becoming more and more immersed in technology but at the same time we are becoming an isolationist society. My generation in particular is more interested in living inside computers instead of the real world. So, when I heard about being able to buy digital land, I was super excited because this is the future. We all know about a growing number of young people spending tons of money on in app purchases in games like Fortnite and PUBG. This is no different. Soon, they would want to be able to live inside the computer and have nothing much to do with the real world.
So, Decentraland (MANA) capitalizes on that by giving you a digital world and an opportunity to stake a claim to it. You can buy pieces of land that you can develop into properties. Those properties can then be sold for higher prices. Transactions take place in MANA (the cryptocurrency). The supply of MANA is reduced because more and more of it is burned every year while the demand is rising. For me, it was a no brainer. This is not like most other altcoins that are useless. You actually buy properties with MANA and the fact that there is limited land on Decentraland and MANA tokens are burned every now and then means that the demand for this cryptocurrency is expected to keep going up and therefore so will its price.
Before we get all excited, let me add that cryptocurrencies are still in a bear market. There will be a lot of interesting projects like Decentraland (MANA) to invest in during the next bullish cycle but for now we have to wait and see how this ends. MANA has yet to decline down to the 61.8% fib retracement level at 0.031. If this level holds then we can expect a move higher. Otherwise, it will have to go down with the rest of the market for now. RSI is at 51.85 on the 1D chart with %K at 37.45 and %D at 55.21. Investors might want to wait for a retest of the 50 day moving average before entering any positions.