The price action has been really dramatic $RLC . After soaring from $0.84 to $1.187, the price was immediately slammed back down to $0.92, and now it’s slowly trying to bounce back toward around $1.01 (+20%).
But don’t get too excited just yet. Looking under the hood, this rebound may not be purely driven by buyers rushing in to scoop it up.
There are strong signs that this rise is just due to short covering—in other words, traders who had opened short positions panicking and closing their contracts. You can see it in futures Open Interest (OI), which actually fell by nearly 8% (from 13.79M to 12.70M RLC) while the price was rising. So open contracts are shrinking, not growing.
On top of that, the funding rate is fairly extreme at -0.2724%. This indicates that short positions are still somewhat crowded, and those traders have to pay the long positions. A situation like this can certainly trigger a short squeeze if the price keeps pushing higher, but it also shows that selling pressure hasn’t really gone away.
The scenario is simple for now:
Safety Zone: $0.92–$0.95. As long as the price doesn’t break below this area, there’s still room for a recovery.
First Test: $1.05. It needs to reclaim and hold this level first, so the bounce isn’t just empty talk.
Main Test: $1.187. If it can break back above yesterday’s high on strong volume, then we can call it truly bullish.
If it fails to hold $0.92, get ready for a slide back to $0.84. Stay calm and watch the situation—don’t get tempted by a little bounce!
But don’t get too excited just yet. Looking under the hood, this rebound may not be purely driven by buyers rushing in to scoop it up.
There are strong signs that this rise is just due to short covering—in other words, traders who had opened short positions panicking and closing their contracts. You can see it in futures Open Interest (OI), which actually fell by nearly 8% (from 13.79M to 12.70M RLC) while the price was rising. So open contracts are shrinking, not growing.
On top of that, the funding rate is fairly extreme at -0.2724%. This indicates that short positions are still somewhat crowded, and those traders have to pay the long positions. A situation like this can certainly trigger a short squeeze if the price keeps pushing higher, but it also shows that selling pressure hasn’t really gone away.
The scenario is simple for now:
Safety Zone: $0.92–$0.95. As long as the price doesn’t break below this area, there’s still room for a recovery.
First Test: $1.05. It needs to reclaim and hold this level first, so the bounce isn’t just empty talk.
Main Test: $1.187. If it can break back above yesterday’s high on strong volume, then we can call it truly bullish.
If it fails to hold $0.92, get ready for a slide back to $0.84. Stay calm and watch the situation—don’t get tempted by a little bounce!