Dance Movement Therapy (DMT) is an established psychotherapeutic intervention that utilises movement to support emotional, cognitive, and physical well-being. While traditional DMT is practiced in physical settings, Extended Reality (XR) presents a new opportunity to expand accessibility by integrating immersive, interactive environments with structured therapeutic movement interventions. This study explores how XR-based DMT can serve as a preventative approach for anxiety by applying wearable biometric monitoring and AI-driven personalisation. Unlike recreational virtual dance activities such as Zumba or general movement-based fitness applications, XR-based DMT follows a structured therapeutic model, incorporating principles of mirroring, embodied cognition, and rhythmic synchronisation to enhance emotional regulation and engagement. The study employs real-time physiological feedback mechanisms, where biometric markers such as heart rate variability (HRV) and skin conductance inform dynamically adapted movement interventions. The findings suggest that XR-enhanced DMT provides a scalable, non-pharmacological intervention for individuals experiencing early-stage anxiety. This study contributes to the growing field of digital DMT by providing an evidence-based framework for integrating immersive technology into therapeutic movement practices, ensuring adherence to the core principles of dance movement therapy rather than generic dance-based interventions. Future research should address long-term efficacy, therapist-led versus AI-assisted interactions, and the potential for XR-DMT in community-based settings.