Zama (ZAMA) is back on track after an explosive recovery in terms of trading volumes and network activity.
Prices of the token increased by more than 10% in the last 24 hours after the release of the company’s second quarter report, which indicated further expansion of its ecosystem.
The move was accompanied by a 20% increase in trading volume, to $110.4 million, suggesting that buyers supported the rally instead of continuing it with thin liquidity.
For potential investors, the question now is whether the latest surge has enough momentum to maintain the uptrend.
Second quarter update already appears on-chain
The market response was not limited to price changes alone.
Activity on the network increased shortly after the report was released, with the number of active addresses doubling in the last 24 hours. The number of token holders has also seen commendable gains in recent times.
On the other hand, Open Interest has surged by double digits, implying that new capital is flowing into the derivatives market and that it is not just position changes from existing traders.
At press time, cumulative leveraged open positions were at an all-time high of $36.4 million following a sharp daily increase of 24%.
Overall, the market is showing improved market sentiment following the latest ecosystem update, a development that could boost the current bullish momentum.
Buyers remain in control
The technical structure has also been strengthened.
ZAMA continues to trade above its major exponential moving averages (EMA), preserving the uptrend that has developed over the last 10 consecutive days.
Holding above these dynamic support levels suggests that buyers are still absorbing selling pressure despite the token’s recent advance.
However, although most metrics and on-chain structure support the market bulls, its stochastic RSI sends warning signals.
On the daily chart, the token’s Stochastic RSI is just rebounding from an oversold region (above 80), suggesting that the token’s price action could be a short-term correction before extending its long-term uptrend.
Can the rally continue?
After the Q2 report, there was higher network activity, an increase in active addresses, derivatives usage, and price action. All indicators collectively point to a potential continuation of long-term momentum.
But even if ZAMA remains above its key moving averages and participation is high, the bulls should keep momentum on their side. A short-term correction cannot be left aside either.
Final summary
- ZAMA gained more than 10% after releasing its second-quarter report, while trading volume soared 20% to $110.4 million.
- Active addresses doubled in the last 24 hours and Open Interest saw double-digit gains, reinforcing the bullish structure of the token.
