Zama [ $ZAMA ] has recovered sharply in trading volume and network activity after the release of its Q2 report.

The token rose by more than 10% over the past 24 hours after the company published its second-quarter update, which pointed to further expansion of its ecosystem. The move came alongside a 20% increase in trading volume to $110.4 million, indicating that buyers supported the rally rather than chasing it on thin liquidity.

The question now is whether the latest spike has enough momentum to sustain the bullish trend.

The Q2 update is already visible on-chain

The market reaction went beyond price alone.

Network activity increased shortly after the report was released, with the number of active addresses doubling over the past 24 hours. The number of token holders has also recorded notable gains recently, a sign that the update is being reflected in participation rather than just in headline trading.

Open Interest also rose by double digits, suggesting that new money is entering the derivatives market rather than simply existing traders adjusting positions.

At press time, cumulative leveraged open positions stood at an all-time high of $36.4 million after a sharp 24% daily increase.

Taken together, the data points to improving market confidence following the latest ecosystem update, while also showing that the move is being tracked across both spot and derivatives markets.

Buyers remain in control

The technical picture has also improved.

$ZAMA continues to trade above its key Exponential Moving Averages (EMAs), preserving the bullish trend that has developed over the past 10 consecutive days.

Remaining above those dynamic support levels suggests buyers are still absorbing selling pressure despite the token’s recent advance.

Even so, while most on-chain metrics and chart structure favor the bulls, the Stochastic RSI is sending a cautionary signal.

On the daily chart, the Stochastic RSI is bouncing from an oversold region, suggesting that price action could see a short-term correction before any further extension of the longer-term bullish trend.

Can the rally continue?

Following the Q2 report, Zama has seen higher network activity, more active addresses, stronger derivatives usage, and rising price action. Together, these indicators point to a market that is responding quickly to the company’s latest update, with traders now watching whether participation remains elevated after the initial move.

Still, as long as $ZAMA holds above its key moving averages and participation remains elevated, bulls will want to keep momentum on their side. A short-term correction cannot be ruled out.

$ZAMA gained 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.