XRP (CRYPTO: XRP) dropped 7% on Friday, capping a 17% weekly loss as the token tests the critical $1 to $1.20 historical support zone that triggered the February recovery.

RSI At 18 Is The Most Oversold Reading In Two Years

XRP is now in capitulation territory with RSI at 18.79, the lowest reading on the entire two-year chart, sitting below both previous oversold signals that each produced substantial recoveries. 

The full EMA stack sits bearishly overhead with the nearest moving average, the 20 EMA, at $1.2900, more than $0.20 above current price. 

The descending trendline from August 2025’s $3.60 peak continues to reject every rally attempt.

Despite the brutal price action, June 4 printed $3.83 million in ETF inflows after June 3’s outlier outflow day, with total net assets holding at $1.01 billion. 

Institutional positioning has not collapsed even as price approaches critical support, which creates the strongest bounce setup since the February lows according to the RSI divergence structure.

The $1 psychological floor is now the last line of defence with meaningful structure. A daily close below that level opens air toward $0.90 and then $0.80 with no visible support in between. 

A bullish recovery requires holding $1.00 and RSI reclaiming 30, which targets the 20 EMA at $1.2900.

Ripple Expands RLUSD Across 40 Chains Via Wormhole

On the fundamental side, Ripple confirmed Thursday that RLUSD, its dollar-backed stablecoin now at $1.73 billion in circulation, went live across more than 40 blockchain networks through Wormhole’s Native Token Transfers framework. 

The rollout reaches Ethereum (CRYPTO: ETH) layer-2 networks including Base, Optimism, Ink, and Unichain, as well as the XRP Ledger EVM sidechain.

Wormhole’s brand carries the history of a $320 million exploit in 2022, but that attack targeted a lock-and-mint bridge mechanism with pooled assets. 

The NTT framework works differently, with Ripple retaining direct minting and burning control across chains without any third-party liquidity pool, eliminating the concentrated attack surface that made the 2022 hack possible.

The RLUSD expansion broadens institutional access to compliant USD-backed liquidity across the broader onchain ecosystem, positioning Ripple’s stablecoin infrastructure to follow wherever XRP demand exists across both XRPL and Ethereum-compatible environments.

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