XRP Ready for Impulsive Movement: Structured Technical Analysis

Cryptocurrency markets frequently reveal structured patterns when analyzed with rigorous technical analysis. XRP, one of the most traded assets, shows a setup that suggests preparation for an impulsive move, according to recent analysis shared by Dark Defender on X. While short-term fluctuations may cause concern, the overall structure of the coin remains resilient and potentially ready for a significant expansion phase.

Elliott Structure and Impulsive Wave: Why Small Corrections Matter

Dark Defender emphasizes an analysis based on Elliott Wave Theory, a framework that divides price movements into corrective and impulsive phases. In the weekly chart of XRP/USD, the analyst identifies a sequence labeled as (A), (B), © representing the corrective phase, followed by the numeric structure 1-5 indicating the start of an impulsive wave.

Technical retracements of 10 to 30 cents do not indicate structural weakness but are part of an “expanded corrective wave.” This expanded setup is seen as a natural consolidation mechanism that prepares the ground for a higher-degree impulse. The conclusion is that these smaller movements reinforce, rather than threaten, the long-term structure. Experienced traders recognize that such patterns often precede significant impulsive transitions, making monitoring this phase critical for future opportunities.

Fibonacci Targets and Profit Zones in the Impulsive Phase

Fibonacci extensions mark essential reference points for the next leg of the impulsive move. In Dark Defender’s chart, two main levels emerge as potential milestones:

• 161.8% Fibonacci: $1.88 – first structured profit zone
• 261.8% Fibonacci: $5.85 – expanded target for prolonged movement

These levels serve as natural points where risk-aware traders might consider partial profit-taking. The Fibonacci approach provides objectivity to targets, eliminating speculation and offering a mathematical framework for price expectations. If the market confirms support and momentum to the upside, these extensions could serve as viable milestones for the subsequent impulsive phase.

Momentum Confirmation: RSI, Ichimoku, and Reversal Signals

Momentum is key to validating any impulsive move. The Relative Strength Index (RSI) on Dark Defender’s chart shows oversold conditions, a technical signal that historically precedes reversals. When RSI is at depressed levels, the probability of a rebound increases, especially if accompanied by confirming price action.

Complementing this analysis, the Ichimoku Cloud provides additional dynamics to the technical framework. This Japanese indicator identifies floating support and resistance levels, as well as trend strength signals. A breakout above the cloud would reinforce the impulsive scenario, while rejection could indicate prolonged consolidation. The interaction between price, RSI, and the Ichimoku cloud creates a triangular confirmation system that enhances the reliability of technical signals.

How Traders Can Capitalize on the Technical Setup

Dark Defender’s analysis provides a clear roadmap for traders. The first step is to confirm support at key levels, monitoring whether XRP maintains the proposed structure. The second step involves observing bullish divergences in RSI as the price tests support, a classic sign of an imminent impulsive move.

Entry should be considered after confirmation of a breakout above the Ichimoku cloud, signaling a phase change. Risk management is essential: setting a stop-loss below the confirmed support protects against adverse scenarios. Traders should set partial targets at 161.8% Fibonacci, reducing risk while allowing additional gains up to 261.8%.

Discipline in price observation, indicator confirmation, and respecting the technical structure are fundamental elements. This combined approach offers a robust framework to understand XRP’s potential impulsive movement, positioning informed traders for a possible cycle transition.