Zama [$ZAMA] is back on track after an explosive recovery in terms of trading volumes and network activity.
The token’s prices increased by more than 10% over the past 24 hours following the release of the company’s Q2 report, which indicated further expansion of its ecosystem.
The move was accompanied by a 20% increase in trading volume to $110.4 million, suggesting buyers backed the rally instead of chasing it on thin liquidity.
For prospective investors, the question now is whether the latest surge has enough momentum to keep the bullish run going.
Source: Santiment
The Q2 update is already showing up on-chain
Market response was not confined just to price changes.
Activity on the network increased soon after the report was published, with the number of active addresses doubling in the past 24 hours. The number of token holders has also recorded some recommendable gains of late.
Source: Token Terminal
On the other hand, Open Interest surged by double digits, implying that there is new money flowing into the derivatives market and not merely existing traders changing their positions.
At press time, the cumulative leverage open positions were at an all-time high at $36.4 million after a sharp 24% daily surge.
Source: CoinGlass
All in all, the market shows improving market confidence following the latest ecosystem update, a development that could boost the current bullish momentum.
Buyers remain in control
The technical structure has also strengthened.
$ZAMA continues to trade above its key Exponential Moving Averages (EMAs), preserving the bullish trend that has been building over the past 10 consecutive days.
Holding above those dynamic support levels suggests buyers are still absorbing selling pressure despite the token’s recent advance.
However, despite most on-chain metrics and structure standing by the market bulls, its Stochastic RSI sends some cautionary signals.
On the daily chart, the token’s stochastic RSI is just bouncing from an oversold region (greater than 80), suggesting the token’s price action could be a short-term correction before extending its long-term bullish trend.
Source: TradingView
Can the rally extend?
After the Q2 report, there has been higher network activity, increased active addresses, derivatives usage, and price action. All the metrics collectively point to a potential momentum continuation in the long run.
But while $ZAMA stays above its key moving averages and participation is high, bulls should keep momentum on their side. A short-term correction cannot be sidelined either.
Final Summary
- $ZAMA gained by more than 10% after releasing its Q2 report, while trading volume climbed 20% to $110.4 million.
- Active addresses doubled over the past 24 hours, and Open Interest posted double-digit gains, reinforcing the token’s bullish structure.