Rising Dragon (RDAC) Surges 22.76% on Shareholder-Approved Fee Cut and Redemption Surge – Is This the Catalyst for a SPAC Comeback?

Summary
• Rising Dragon Acquisition Corp (RDAC) surges 22.76% intraday, trading at $12.755 after shareholder approval of a reduced monthly extension fee.
• Shareholder vote passed with 3,812,240 votes in favor, slashing extension fees from $189,750 to $2,703.69 per month.
• 5.66 million shares redeemed in recent meetings, shrinking public float and trust cash significantly.

Rising Dragon Acquisition Corp (RDAC) has ignited a 22.76% intraday rally, trading at $12.755 as of 15:04 ET, driven by a landmark shareholder-approved amendment to its trust agreement. The move, which slashes monthly extension fees from $189,750 to $2,703.69, has recalibrated financial incentives for sponsors and investors. With 5.66 million shares redeemed in recent months, the SPAC’s structural shift signals a strategic pivot toward disciplined execution, sparking renewed interest in a sector long plagued by volatility and skepticism.

SPAC Restructuring Sparks Investor Optimism
Rising Dragon’s 22.76% intraday surge stems from a pivotal shareholder-approved amendment to its Investment Management Trust Agreement, reducing the monthly extension fee from $189,750 to $2,703.69. This adjustment aligns sponsor incentives with investor interests by penalizing delays and curbing share dilution risks. The amendment, passed with 3,812,240 votes in favor, allows up to six one-month extensions (totaling 21 months) to complete a business combination. Coupled with 5.66 million share redemptions, the fee cut has significantly reduced the public float and trust cash, creating a more concentrated shareholder base. This structural shift addresses investor skepticism by introducing accountability and cost transparency, positioning RDAC as a potential blueprint for SPAC reform in a market desperate for disciplined execution.

Technical and Options Analysis: Positioning for a Volatile SPAC Play
• RSI: 54.11 (neutral to overbought threshold)
• MACD: -0.308 (bearish divergence), Signal Line: -0.247 (reversal potential)
• Bollinger Bands: Upper $12.69 (near current price), Middle $10.29, Lower $7.90 (strong support)
• 200D MA: $10.35 (key re-entry level)

RDAC’s technical profile suggests a short-term bullish breakout, with RSI hovering near overbought territory and Bollinger Bands tightening as volatility peaks. The 200-day moving average at $10.35 acts as a critical support level, while the upper band at $12.69 aligns with the intraday high. Given the lack of options liquidity, traders should focus on core technicals: a break above $14.10 (intraday high) could trigger a retest of the 52-week high at $16.43, while a pullback below $10.29 (middle Bollinger) may invite short-term selling. The absence of leveraged ETFs complicates direct exposure, but the stock’s momentum suggests a high-risk, high-reward trade for those willing to navigate SPAC volatility.

Backtest Rising Dragon Stock Performance
The backtest of RDAC's performance after a 23% intraday surge from 2022 to now reveals mixed results. While the ETF experienced a maximum return of -0.18% during the backtest period, with a 3-day win rate of 33.33%, a 10-day win rate of 33.33%, and a 30-day win rate of 44.44%, the overall trend was negative, with returns of -2.01% over 3 days, -6.02% over 10 days, and -6.65% over 30 days. This suggests that while RDAC had brief periods of positive performance, it largely underperformed in the longer term following the intraday surge.

Act Now: Rising Dragon’s Fee Cut Could Signal a Strategic SPAC Turnaround
Rising Dragon’s fee cut and redemption surge have created a unique catalyst for SPAC reform, aligning sponsor and investor interests in a market starved for accountability. While technicals suggest a volatile path ahead—with key levels at $10.29 and $12.69—structural changes position RDAC as a potential bellwether for disciplined SPAC execution. Investors should monitor the 200-day MA ($10.35) for re-entry opportunities and watch for a breakout above $14.10 to validate bullish momentum. In the broader market, JPMorgan Chase (JPM) leads the Capital Markets sector with a 0.89% intraday gain, underscoring the sector’s mixed but improving sentiment. For RDAC, the next 48 hours will test whether this structural pivot can sustain investor confidence—or if SPAC skepticism will resurface.