This is why Mines of Dalarnia has come together and may continue to do so

• Dalarnia mines are climbing for the second consecutive session on Monday, breaking the downtrend line.
• On-chain data shows that DAR’s daily active addresses are increasing and the exchange flow balance is decreasing, signaling a bullish move.
• A daily candle close below $0.136 would invalidate the bullish thesis.

Mines of Dalarnia (DAR), the native token of a blockchain-based game that combines elements of action, adventure and strategy with decentralized finance (DeFi), is surging for the second day in a row on Monday. DAR, which rose 57% over the weekend, is breaking above the downtrend line, signaling a bullish move. The increase in daily active addresses and a negative increase in balances from the currency threshold further suggest that the current rally still has some way to go.

Dalarnia Mines price shows the potential for a future rally

Dalarnia mines rose 57% on Sunday, retested and faced resistance from the downtrend line (drawn by joining several close daily levels from mid-March). On Monday, it is trading 23% higher at $0.241 at the time of writing, breaking above the downtrend line, which signals a bullish move ahead.

If DAR breaks decisively above the downtrend line and closes above weekly resistance at $0.238, it could rise 25% to hold its March 13 high of $0.299.

The Relative Strength Index (RSI) on the daily chart rose above 75 to overbought levels. When the indicator enters overbought (+70) territory, investors should stop adding to their long positions but keep existing long positions open as the asset price could continue to rise. The Awesome Oscillator (AO) is about to break above its neutral level of zero. For a bullish move to sustain, both momentum indicators should remain above their neutral levels.

DAR/USDT Daily Chart

Santiment’s Exchange Flow Balance Index shows the net movement of tokens into and out of exchanges. A positive spike indicates an influx of tokens on exchanges, suggesting selling pressure from investors. Conversely, a negative spike indicates an outflow of tokens from exchanges, indicating less selling pressure from investors.

In the case of DAR, the exchange flow balance decreased from 40,283 to -3.42 million from Saturday to Sunday. This large negative spike generally suggests a decline in selling activity.

In the same period, the supply on the exchanges decreased by 2.5%, from 141.89 million to 138.46 million. This decrease in supply indicates that investors are moving DAR tokens from exchanges to their wallets, reducing selling pressure. This is an optimistic development, further denoting investor confidence in Dalarnia Mines.

DAR Exchange Floor Balance and Supply on Exchange chart

Additionally, the indexed Daily Active Addresses data, which helps track network activity over time, aligns with the bullish outlook seen from a technical perspective. An increase in the metric signals greater use of the blockchain, while a decrease in addresses indicates lower demand for the network.

For DAR, Daily Active Addresses rose 10% in a single day, the most since August 2nd. This indicates that the demand for the use of blockchain by DAR is increasing.

DAR Daily Active Addresses Chart

Despite the bullish thesis signaled by both chain data and technical analysis, the outlook will change to the downside if DAR’s daily candlestick closes below the daily support level of $0.136. This scenario could lead to a 26% crash to retest the August 5 low of $0.099.