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...  The highest quality relic he encountered was Balerion's skull, which was red and legendary.

 The level of quality is probably:

 Legendary level (red), epic level (purple), excellent level (blue), good level (green)…

 Whether there are lower levels below the good level remains to be discovered.

 Legendary level and above are basically considered to be of golden quality.

This shows how valuable the dreamer is.

 He did have many dreams.

 About drag ...

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