XRP Users Receive Vital Warning: What Does On-Chain Data Reveal?

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Xumm Wallet XRP Users Receive Crucial Alert

A warning has been issued to XRP users of the Xumm wallet, aimed at helping them stay safe while navigating the internet. Xumm wallet users are being alerted about a fraudulent Xumm App extension for Chrome available on the Google web store and are strongly advised not to install it.

Due to the recent impressive performance of XRP’s price, scammers are continuously coming up with new tactics to steal XRP funds. In this context, XRP holders are urged to exercise caution and take precautionary measures against malicious actors.

For Xumm wallet owners, it’s important to note that XUMM/Xaman is exclusively a mobile wallet, and there is no legitimate browser extension associated with it. Any such browser extensions are scams designed to steal funds.

Warning 🚨

There is scam XUMM App extension for Chrome on Google web store.
DO NOT install it!

What you can do is report it for abuse.

XUMM/Xaman is mobile wallet only and there is no such thing as browser extension.

— XRPLWin 🛠️🪝 (@XRPLWin) November 7, 2023

The Xumm Wallet team has made it clear that they do not currently offer browser plugins and have no intentions of doing so in the future. Xumm Wallet remains a mobile application, and users need to remain vigilant against scams. Xumm has explicitly mentioned in its FAQ on its official website that they deliberately avoided creating a browser plugin due to the inherent vulnerabilities and susceptibility to scams and phishing attacks.

Additionally, they highlight that browser plugins can be counterfeited, replicated, or mimicked on a webpage. The same rationale applies to their decision not to develop desktop environments, as these are considered more challenging to secure and more susceptible to compromise through means like keyloggers and viruses.

Moreover, they are seen as less personal compared to mobile phones. Phones are typically carried by users, making them less likely to be accidentally left unlocked as opposed to desktops.

It’s worth noting that Xumm previously issued an urgent alert to its Samsung users, particularly Samsung Galaxy S21 users, regarding an issue that temporarily halted Xumm’s functionality on the device. Fortunately, this issue has since been resolved.

XRP Confronts a Critical Resistance Level

XRP’s $0.7 price level has become a subject of concern, as on-chain data sends a warning to the community. Recent trading sessions have shown that XRP struggles to break through this significant price point. Despite multiple attempts, every rally is met with resistance, mirroring the challenges seen in the broader cryptocurrency market.

This trend isn’t unique to XRP, as similar patterns have emerged for other leading cryptocurrencies like Ethereum and Cardano (ADA). It suggests that this resistance is not an isolated issue within the XRP ecosystem but a reflection of broader market hesitation. This resistance isn’t just a visual pattern on the charts; it’s backed by underlying on-chain data.

The adjusted Network Value to Transactions (NVT) ratio, often used to measure a network’s value relative to its transaction volume, has seen a noticeable decline. In simpler terms, even though the network’s valuation remains high, the transaction volume doesn’t support it, indicating a potential overvaluation at current levels. This is a signal for investors to exercise caution.

Adding to the concern is a significant drop in trading volume, which has plummeted from $2.3 billion to just $700 million. This dramatic decrease in trading volume is meaningful since it’s a crucial indicator of an asset’s liquidity and investor interest. High volume periods typically reflect strong interest or a consensus on price direction, while declining volumes may suggest a lack of conviction or a pause in momentum.

The contraction in volume at the crucial $0.7 level implies that investors are stepping back, reevaluating their positions, and perhaps feeling uncertain about XRP’s short-term potential. Such periods of high volatility are often followed by a consolidation phase, which might be what we are currently observing with XRP.