The red thing you have is called a "Shard of the Rain", and it is important because it is a key to unlocking the next area. You can use it to open a door in the Rainy Cavern.

To find the Rainy Cavern, you need to head back to the area where you fought the Rain Frog. From there, go to the right and you will find a cave entrance.

The Rainy Cavern is a dangerous place, so be prepared. There are many enemies there, including the Rain Frogs.

Once you find the door that the Shard of the Rain can open, you will be able to progress to the next area.
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