LINEA's recent price action raises an interesting question: is this a genuine recovery or just another false dawn?

The token climbed 1.22% over the past day, yet it's still nursing an 11.81% weekly loss. What we're seeing looks like a textbook oversold bounce. The RSI jumped from a severely depressed 17 all the way to 27, signaling that the selling pressure might be exhausting itself.

Here's what's actually happening beneath the surface:

First, this appears to be classic short-covering territory. When assets get hammered this hard, traders who bet against them start closing positions, creating temporary upward pressure.

Second, the airdrop dumping wave seems to be losing steam. Early recipients who rushed to cash out have largely done so, removing a major source of downward pressure.

Third, broader market sentiment is shifting. With speculation around potential Fed rate cuts heating up, alternative tokens are catching bids as risk appetite tentatively returns.

But let's be real—a bounce from extreme oversold conditions doesn't automatically signal a trend reversal. The weekly chart still looks rough, and we need sustained volume and follow-through to confirm anything more substantial than a dead cat bounce.