Ripple Effect

The Ripple Effect - 8/7/25

XRP faces a pivotal day as the SEC deliberates on the appeal withdrawal in a closed-door meeting while Trump signs EO opening $12.5T in retirement funds to crypto. Ripple acquires Rail for $200M, positioning itself to capture 10% of global stablecoin payment flow.

The Ripple Effect

07 Aug 2025 — 4 min read

Photo by Dmytro Demidko / Unsplash

XRP faces a pivotal day as the SEC deliberates on the appeal withdrawal in a closed-door meeting while Trump signs a groundbreaking executive order opening $12.5 trillion in 401(k) retirement funds to crypto investments. Meanwhile, Ripple announces its $200 million acquisition of Rail, positioning itself to capture 10% of global stablecoin payment flow.

Market Update

XRP Price Action:

Current Price: $2.99 (+2.02% 24h)
24h Range: $2.91 - $2.99
Market Cap: $178.38B (Rank #4)
Trading Volume: Down 12% over 24h indicating uncertainty
Key Resistance: $3.00 psychological level
Critical Support: $2.65 (quarterly VWAP)

Technical Analysis: XRP broke through $3.02 earlier today before settling near $2.98, marking its highest levels since late May. Traders are positioning themselves for a potentially favorable regulatory outcome that could remove longstanding legal uncertainties. However, heavy selling by large XRP holders has driven recent corrections, with over 640 million XRP dumped since July 9.

Key Developments

SEC Deliberation Day

Historic Decision Pending: The U.S. Securities and Exchange Commission (SEC) is set to deliberate on Ripple's decision to withdraw its appeal in a hearing scheduled for 03:00 UTC on August 7. This closed-door meeting could determine whether the SEC formally drops its own appeal.

What's at Stake: Former SEC lawyer Marc Fagel claimed the need for the agency to get the dismissal approved before the August 15 deadline. If the hearing results in locking in XRP's non-security status under U.S. law, it would remove a significant regulatory overhang that has suppressed XRP's price for years.

Current Status: Ripple has already taken decisive steps toward resolution by paying a $125 million fine—currently in escrow—and withdrawing its cross-appeal.

Trump's 401(k) Crypto Revolution

Game-Changing Executive Order: President Donald Trump will sign an executive order Thursday that aims to allow private equity, real estate, cryptocurrency and other alternative assets in 401(k)s, a major victory for industries looking to tap some of the roughly $12.5 trillion held in those retirement accounts.

Market Impact: The price of bitcoin climbed around 1% to reclaim the $116,000 level for the first time since July 31. Ether rose almost 5% on the news. Widespread inclusion of bitcoin in Americans' retirement accounts has long been viewed as a holy grail for crypto adoption.

Implementation Timeline: Whatever changes may come from Trump's order, it likely will not happen overnight, private equity executives say. The order directs the Labor Department to reevaluate ERISA guidance and coordinate with federal agencies.

Ripple's $200M Rail Acquisition

Strategic Expansion: Ripple has agreed to acquire Rail for $200 million, as part of efforts to dominate stablecoin-based global payments. Rail is forecasted to process over 10% of the $36B global B2B stablecoin payments in 2025.

Enhanced Capabilities: Rail's capabilities include virtual accounts and automated back-office systems, enabling customers to transact in digital assets without the need to open dedicated crypto bank accounts or wallets on exchanges.

CEO Commentary: Ripple's CEO confirmed the acquisition in an X post on 6 August, highlighting the company's continued activity during a typically slow month stating: "No such thing as the August doldrums at @Ripple…very excited to share that we're acquiring @RailFinancial!"

Expert Voices

Jake Claver's Bold Predictions

$200M XRP Position: Jake Claver, the CEO of Digital Ascension Group, revealed that his firm, Digital Wealth Partners, now holds more than $200 million worth of XRP during a recent livestream.

Long-term Vision: Claver believes XRP could do the same for digital payments, bridging payment apps and systems across the globe. He thinks that kind of real-world use case is what will eventually force a price re-evaluation once institutions catch on.

Ambitious Timeline: Claver said he sees XRP climbing as high as $2,000 by Jan. 1, 2026, if certain global and market conditions come together.

Market Sentiment Indicators

Derivatives Activity: At the time of writing, Coinglass data revealed total XRP futures open interest rising nearly 2% in the last 4 hours. Moreover, futures OI on CME and Binance climbed more than 1.83% and 2,24% in 4 hours, respectively.

Institutional Interest: Binance long positions increased from 64% to 69% in early August, showing renewed interest despite whale selling pressure.

Looking Ahead

Immediate Catalysts

SEC Decision: Outcome of today's closed-door deliberation could provide immediate price catalyst
August 15 Deadline: Joint status report filing with appellate court
Q4 Rail Integration: Deal expected to close in fourth quarter 2025

Key Price Levels to Watch

Upside Targets: $3.15, $3.40 if $3.00 resistance breaks convincingly
Downside Risk: $2.65 critical support; failure could trigger move toward $2.00

🔮 Market Outlook

Financial analysts and XRP proponents argue that a clean end to the case could finally unlock real momentum for XRP adoption. There's even talk that BlackRock could be waiting for this moment before filing for an XRP ETF.

Sources

DISCLAIMER: This newsletter is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any securities. XRP and cryptocurrency investments carry significant risks including potential total loss, extreme volatility, and regulatory uncertainty. Past performance does not guarantee future results. Unless we have a formal advisory agreement, I am not acting as your investment adviser. Consult a qualified financial professional and conduct your own research before making investment decisions.