Since it is on a ledge on the mountain, you will have to climb. When you finally get to the ledge, you see that it was where the neko's and the dragon had been when you had first come across them.

[You can cut through them with your sword]

she grabs it and as a trade offers you a comb.

Take the comb XD

[I apologize for the wait, I had finals]
It lands on the water, and little bubbles and water balls rise from the water and just float around the dragon.

I reach out my hand gently to touch it, looking away slightly

Sorry, I don't think you got the ping ^^

When you take the comb she puts the medallion in the water and then puts it up to the sun.
[Why does putting shiny things in water always make it more shiny?]

( becuz water reflects n stuffff )Ask the mermaid why they like the shiny medallion.

[I get it, finals suck]
It reaches its neck to sniff your hand.

She says "Because they are shiny, it looks like how my fins sparkle in the sunlight!" She then giggles and reaches for some more shells to put on the medallion.

(Eh, bold is what you last sent to me, since quoting gets weird after a while tbh)

It reaches its neck to sniff your hand.

I stay perfectly still with my body and draw my head gently over it's ear, scratching it reassuringly