Stellar (XLM) Is Riding a Bullish Wave

Cryptocurrencies climbed on Monday, indicating improved investor sentiment. BTC surpassed $87,000 in the early Asian trading hours, while popular cryptocurrencies like Stellar witnessed rises.

Cryptocurrencies rose on Monday, indicating better investor sentiment. BTC went above $87,000 in early Asian trading hours, while popular cryptocurrencies such as Stellar saw gains. The increase in Bitcoin’s price appeared to be driven by a decline in the U.S. dollar index (DXY), which reached a three-year low, and a rally in gold.

Bitcoin rose 1.21% over the last 24 hours to $86,696.65 by 06:08 ET (10:08 GMT). Meanwhile, Ether (ETH) increased by 0.30% to $2,146.38, continuing its recovery from last week’s lows. Among other cryptocurrencies, Monero (XMR) dropped 0.40%, Stellar (XLM) rose 6.51%, and Cardano (ADA) increased by 0.86%.

Cryptocurrencies were trading higher on Monday, extending gains from the previous week as improving macroeconomic sentiment and a decline in the U.S. dollar boosted broader market mood.

Bitcoin, the world’s largest cryptocurrency, rose 0.8% to $86,400 by 03:03 ET (07:03 GMT), continuing gains for a second day. The token slid to a one-week low of $84,000 on Sunday.

Bitcoin had slid from a seven-month high of $87,420 reached on Friday, as a U.S. jobs report showed that hiring remained strong in July despite rising interest rates. But the world’s largest cryptocurrency recovered some lost ground on Monday.

A decline in the dollar also aided crypto tokens. The U.S. dollar index, which measures the greenback against a basket of six currencies, slid to 91.766 on Monday, dropping to a three-year low. The dollar index fell sharply after data on Friday showed that the U.S. economy added a stellar 255,000 jobs in July.

Economists had expected a reading of 240,000, while June’s figures were revised up to show 273,000 job additions instead of the 215,000 previously reported. A lower-than-expected reading in the unemployment rate also supported the dollar.

But the stellar jobs report, which also showed a slight rise in average hourly earnings, signaled that the U.S. labor market remained strong despite the Federal Reserve’s aggressive monetary tightening to tame sticky inflation.

Rising interest rates usually bode poorly for cryptocurrencies, which are typically valued on their future cash flows. But a series of interest rate hikes in the past 18 months have also led to a narrative that the Fed could soon begin cutting interest rates if inflation cools further.

World’s no. 1 cryptocurrency up 4.81% in seven days

Stellar and XRP have often been compared due to their shared origins and overlapping use cases in global payments. But recent performance shows that XLM is gaining ground, at least in the short-term price movements.

While both coins rose, XLM went up by 7%, while XRP only rose by 4%, indicating renewed interest in Stellar (XLM).

Stellar has been steadily climbing since April 16, spending four out of five days in the green. The rally continued after a decline on Sunday, pushing the price close to the key barrier at the daily SMA 50 at $0.262, which has limited XLM's price since February.

At the time of writing, XLM was up 6.51% over the last 24 hours to $0.2567. Stellar (XLM) recovered from the previous week's losses, rising 4.81% over the last seven days. Daily trading volume for XLM also increased as traders looked to capitalize on the bullish wave. According to CoinMarketCap, XLM's trading volume reached $153.3 million, an 80% increase over the past day.

XLM outperforms XRP in gains

Both Stellar and XRP have been a subject of comparison due to their shared origins and overlapping use cases in global payments. But recent performance shows that XLM is gaining ground, at least in the short-term price movements.

Both coins rose, but XLM went up by 7%, while XRP only rose by 4%, indicating renewed interest in Stellar (XLM).

Stellar has been steadily climbing since April 16, spending four out of five days in the green. The rally continued after a decline on Sunday, pushing the price close to the key barrier at the daily SMA 50 at $0