Technical Analysis: Mines of Dalarnia (DAR) Price Prediction

Technical Analysis: Mines of Dalarnia (DAR) Price Prediction

1yr ago

As prices seem to be accumulating right now, should you invest in DAR? Or other coins, like TLM and ALICE, are better options? Read more to find out!

Technical Analysis: Mines of Dalarnia (DAR) Price Prediction

Table of Contents

For the past four months, especially after Facebook’s announcement of Meta, metaverse tokens have embarked on a new trend in the world of cryptocurrency. This is because it is a trend that can bring utility to the blockchain, unlike the memecoins trend that pumped a bunch of coins that served no real purpose. According to CoinMarketCap, Mines of Dalarnia (DAR) ranks 267 by market cap which hints that the token is quite undervalued. It is a micro-cap coin with a market cap of around $282,000,000. With more than 90,000 Twitter followers, it is clear that DAR has a strong community, which means that more people in the future will be willing to buy the token and pump it up. With player tournaments coming up in Q2 of 2022, could buyers be accumulating here before fundamental catalysts start to gain more traction for the project? 

Let’s jump into the charts and find out!

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Which Time Frame to Select For a Better Analysis?

DAR is a new project and has only been trading on Binance for a month. This means that there is not enough price history for us to find levels in the 1D time frame. However, better data points can be derived by looking at its 4h charts in different trading pairs. Even though there are a few levels in the 1D time frame that we can mark, most of the supply and demand zones have been formed in the 4-hour time frame. 

DAR/USDT in a 4 Hour Chart


In the 4-hour chart of DAR against USDT, it is clearly finding a fair value point, as it got quite a pump initially due to the hype surrounding metaverse tokens when it was launched on Binance. 

You can infer that quite a few people got excited at first, FOMO-ing in and shooting the price up. This pump, unfortunately, was short-lived and, therefore, it is likely that there will be some long-term bag holders. This is not an ideal situation because there is a possibility that as soon as the price will pump, bag holders will sell, suppressing the price. For a better understanding, we can take DOGE as an example where the price pumped to around $0.7, however, it was also short-lived. And recently, whilst all dog coins were going parabolic, it did not deliver the same returns as anticipated by many. However, DAR is much different due to the fact that its market cap is low at this point. Once the price finds its fair value point, buyers will start to accumulate. I think that this fair value area could be around $1.85 to $2.43 because this is the range where the price was accumulated last time. Therefore, it is possible that this area will turn out to be an accumulation zone again. The price will at least stay around this previous accumulation area for a bit. If you look at multiple charts, you will find that prices usually slows down in previous points of control as buyers and sellers try to agree on what fair value for the coin is. 
There is a clear demand for the coin as visible in the chart where the support was successful at the $1.85 level. 

Even if DAR starts to pump, it is imperative that it will outperform BTC. So let’s jump into the DAR/BTC chart.

DAR/BTC in a 4-Hour Time Frame

There are two ways to look at the DAR/BTC chart here: On the one hand, it is consolidating at the mid-point, and a range is forming. So if it breaks below the midrange, it will test the lows. At the time of writing, It is still consolidating above the level. If it continues to do this, it is likely that the price will test the 0.0000739 sats level. 
BTC has been extremely weak recently, however, ETH has shown a lot of strength, which is promising for altcoins. We could potentially see DAR move up whilst BTC decides which direction it wants to go. The price structure has already changed as you can see that it has closed above the higher low, which indicates a bullish market structure. It shows that this could move soon to the top of the range. However, caution is necessary here as BTC is at the top of its range, and any drop in its price usually affects alts. 

DAR/TLM and DAR/ALICE in a 4 Hour Time Frame

TLM and ALICE are two metaverse coins with very similar market caps. It makes sense to compare them to DAR to make sure that we are going for the right asset in the sector to invest in. 

Should You Go for TLM instead of DAR?

DAR/TLM is at a major decision point, and it seems as if the price is going to consolidate before its next big move up. At the time of writing, DAR/TLM has been rejected at the top of the range. If the price flips the 9.75 level, DAR is the play-to-earn metaverse token you want to be holding. This is because it would be likely that that price would break the trendline and continue to move upwards. 
It is in no man’s land now, so it wouldn’t be easy to determine whether to go long or short here. If the price breaks down from the demand zone at 8, however, you’d want to be holding TLM over DAR

Is ALICE a Better Option?

The DAR/TLM chart is very similar to the DAR/ALICE char as they are both consolidating in a tight range. Therefore, whichever level it breaks, the price will make a big move and you want to be on the side of the winner. It is better to favor longs for DAR over Alice since the price is currently in the demand zone.

What Does the Fear and Greed Index Say?

Due to the recent crash in BTC prices, people will be less risk-averse. This can even be seen in the fear and greed index that shows that many market participants are fearful. However, some may look at this as a buying opportunity because, in trading, the majority is usually wrong. Therefore, being on the opposite side of the majority, longing is a better option when everyone is scared.

Summarizing Everything Explained Above

  • Mines of Dalarnia (DAR) has a market cap of around 282,000,000, making it a micro-cap token with good growth potential.
  • Traders are risk-averse right now due to BTC weakness. The fear and greed index shows a peak in fear, which is a good sign for those opening a long position
  • Currently, the price is ranging/accumulating before expansion.
  • DAR could outperform ALICE for the foreseeable future. 
  • DARTLM is at a decision point, however. 
  • DAR/USDT in a 4-hour time frame: Looks like the price is attempting to find its fair value and accumulating before expansion, with a breakout above resistance.
  • The only worry to have is the amount of supply that could flood the market, potentially turning it into an SLP-type token. 
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