Simple answer: Because clouds are wet.
Expanded answer: Rainbows are formed by the refraction (bending) of light, as it bends it is split into all the frequency's that make up that beam of light. as clouds are made of water vapour when they cool and become more dense and light can refract the same way it would through mist, light rain or spray
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A rainbow in a cloud, known as a cloud iridescence, is caused by the diffraction and refraction of sunlight by water droplets or ice crystals in the clouds. This phenomenon creates a colorful display due to the bending of light, with the colors appearing more pastel and diffused compared to a classic rainbow.
sometimes when you spray water
A rainbow occurs when sunlight is refracted, reflected, and dispersed in raindrops, producing a spectrum of light. The necessary conditions for a rainbow to form include sunlight, raindrops, and the observer positioned between the sun and the rain.
A wall cloud is a large rotating cloud formation that extends beneath the storm cloud base, often found in severe thunderstorms and tornadoes. It appears as a lowering and rotating cloud base typically at the rear of the storm. Wall clouds are closely associated with supercell storms and can sometimes indicate an increased likelihood of tornado formation.
Cumulonimbus is a type of large, dense cloud that is associated with thunderstorms and severe weather. It is recognizable by its towering structure with a flat anvil-shaped top and can produce heavy rain, lightning, strong winds, and sometimes hail or tornadoes.
A wall cloud is a large, lowering cloud formation that extends beneath the base of a thunderstorm. It often has a wall-like appearance and can be rotating. Wall clouds are typically dark and turbulent, and can sometimes be a precursor to tornado formation.