Late last week the price of Ripple’s XRP token hit some of its lowest levels in over a year, reaching $0.25 per coin. The last time XRP was worth that little was in mid-December 2017, just before soaring to over $3.00 per coin in the space of a few weeks.
However, following the drop, XRP has come back spectacularly – gaining almost 20% in value and shooting back above $0.30 in the past 24 hours. For some, the sudden gains may be reminiscent of the beginnings of the 2017 rally – but what is causing them this time?

A petition for a possible hard fork?

Financial publication Forbes noted that a potential hard fork could be on the cards due to infighting in the XRP community, with this being a possible reason for the spike. Apparently, many proponents of XRP have been riled by the news that Ripple is selling XRP tokens to certain clients to fund investments. This conclusion is based off a 48% increase in quarterly sales of XRP tokens posted by Ripple in July.
As a result, several thousand community members have signed a petition to stop Ripple dumping XRP and some have even called for a fork of the network. However, there is little evidence to suggest this would be driving an increase in price, as the uncertainty of an impending fork is just as likely to cause a drop.

Coinbase Partnership

Another possible reason is a rumored partnership between Ripple and the hugely popular crypto exchange Coinbase. Although there has been no official announcement, Ripple’s head of Global Institutional Markets, Breanne Madigan, recently mentioned a connection between Ripple’s xRapid product and Coinbase while speaking at the Global Blockchain Policy Forum in Paris.

XRP/BTC Charts Point to Buy Signal

Prominent trader Jacob Canfield posted an XRP/BTC chart on TradingView recently highlighting some strong buy signals for XRP. The three-day Relative Strength Index (RSI) moved from an oversold to overbought position, an event that has previously precipitated massive gains for XRP. In addition, the XRP/BTC price bounced off the 23.6% Fibonacci support level, similarly echoing previous moves that have resulted in huge price surges.
At the end of the day, whatever it is that’s causing the recent price rise, there certainly seems to be further gains incoming for XRP. Several traders believe the coin will revisit recent highs of $0.40 by October this year, with potential for making a new all-time high (ATH) above $3.00 in early 2020.