Zama [ZAMA] has emerged as one of the strongest-performing tokens in the market after extending its breakout with another double-digit gain. The token has rallied by 17.55% over the last 24 hours. This builds on momentum that began after it successfully retested an ascending channel resistance level as support at $0.074 two days ago.

That technical confirmation encouraged fresh buying. As a result, the token’s price action reclaimed higher levels as participation accelerated across the market. What is more intriguing is that the rally is also being backed by strengthening on-chain fundamentals.

Could the network bulls keep current momentum going? Let’s find out.

Record TVL signals growing network adoption

One of the biggest factors standing out behind the latest advance is the continued growth of the ZAMA ecosystem.The network’s Total Value Locked (TVL) has climbed to a new all-time high at $99 million, indicating that more capital is being committed to the protocol.

Moreover, growth across Morpho vault expansion and Zama Swap has contributed to the increase, pointing to improving ecosystem usage and stronger investor confidence.

Derivatives activity supports the breakout

Besides the position long-term and holders sentiments, market participation has also strengthened across both spot and derivatives markets.

The network’s open Interest has spiked by more than 29% to $38.71 million. This suggests fresh capital is entering the futures market. As a result, traders position for further bullish advances.

Can ZAMA reclaim $0.108?

On the daily chart, the next major technical objective for bulls sits around the $0.108 swing high. A continued expansion in TVL, sustained growth in Open Interest and elevated trading activity could provide the momentum needed for buyers to challenge that level.

However, after a rapid 17% advance, a short-term profit-taking before the next bullish push could be on cards. This is more so given that short dominance among the leveraged position giving a hint.

All in all, the long term structure leans to the bulls favor and most fundamentals and on-chain metrics support an extended bullish momentum in the long run.