Analyst: XRP Is in Early Stages of Forming an Impulsive Structure – What It Means

• Mathew Dixon says XRP is forming an early bullish impulsive Elliott Wave, with Wave 3 completing at the 1.618 “golden ratio.”
• Price holding above the Wave 1 high is key, with the current Fibonacci retracement zone and neutral RSI supporting a healthy pause before a potential next leg up.
• If the structure holds, a Wave 5 advance could follow, offering a favorable risk-reward setup.

Crypto analyst Mathew Dixon has shared a technical outlook suggesting that XRP may be entering the early stages of an impulsive move to the upside. According to Dixon, recent price action aligns with a developing Elliott Wave structure, a framework commonly used to identify trend continuation and momentum-driven advances.

The analyst argues that XRP’s recent rebound is not random, but rather part of a larger impulsive sequence that could set the stage for further upside if key structural levels continue to hold.

Wave Count Suggests Momentum Is Building

In his analysis, Dixon notes that Wave 3 has already completed and measured precisely 1.618 times the length of Wave 1, a ratio widely known as the “golden ratio” in Elliott Wave theory.

This proportional relationship is often associated with strong momentum phases and is considered a hallmark of healthy impulsive trends. Wave 4, according to Dixon, is currently unfolding as an alternate corrective structure rather than a sharp breakdown.

This type of consolidation typically reflects digestion of gains rather than trend exhaustion, increasing the likelihood of another push higher once the correction resolves.

Also Read: XRP Has Spent 70 Days Below Its 50-Week SMA, Here’s What Analysts Say Is Coming Next

Key Levels to Watch on the Chart

The accompanying chart highlights XRP’s recent sharp sell-off followed by a strong rebound, with Fibonacci retracement and extension levels clearly mapped out. Price has retraced into the 0.618–0.786 Fibonacci zone, an area often associated with higher-probability corrective pullbacks within impulsive trends.

Importantly, XRP has so far remained above the Wave 1 high, a critical condition for the bullish wave count to remain valid. Dixon emphasizes that dips above the Wave 1 level represent potential entry zones, while a decisive move below that level would invalidate the impulsive structure.

RSI and Market Behavior Support Consolidation

The chart’s Relative Strength Index (RSI) adds further context to the setup. After dipping into oversold territory during the sharp decline, RSI has rebounded into the mid-range and is now consolidating around neutral levels.

This behavior is consistent with a Wave 4 pause, where momentum cools before a potential Wave 5 advance. Rather than signaling weakness, the RSI structure suggests the market is resetting momentum while maintaining bullish potential.

Source: Mathew Dixon/X

What Comes After a Five-Wave Move

Dixon notes that once a full five-wave impulsive structure is completed, XRP would be expected to enter a corrective phase before potentially beginning another five-wave advance. This stair-step progression is typical of sustained uptrends, where corrections serve to reset conditions rather than end the move.

From a risk perspective, Dixon highlights that stop-loss levels can be tightly defined just below Wave 1, offering what he describes as a favorable risk-to-reward profile. Initial upside targets imply a risk-reward ratio greater than 3:1, while the broader structure could offer returns closer to 10:1 if the full wave sequence plays out.

Cautious Optimism as Structure Develops

While Dixon describes the setup as a “perfect trade” from a structural standpoint, the analysis hinges on XRP maintaining support above Wave 1 and continuing to respect its impulsive framework. Failure to do so would negate the bullish thesis and shift the outlook back toward consolidation or further downside.

For now, XRP appears to be in a critical development phase. If the current Wave 4 resolves higher as expected, the next leg could confirm whether this early impulsive structure evolves into a broader trend continuation or stalls before reaching its full potential.

Also Read: XRP Army Celebrates Big XRP Ledger Move – Here’s What Happened

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