ZKC +3.11% as Short-Term Rally Amidst Prolonged Declines

On OCT 6 2025, ZKC rose by 3.11% within 24 hours to reach $0.3218, while recording a 2774.79% drop over 7 days, a 2615.77% decline over 30 days, and a massive 6571.95% fall over 1 year. The recent intraday rebound marks a brief respite in an otherwise bearish trendline.

Recent developments in ZKC activity indicate a strategic focus on on-chain infrastructure and governance enhancements. A major milestone was reached with the completion of the Zero-Knowledge Consensus (ZKC) protocol’s Layer 2 expansion, designed to scale throughput while reducing gas costs for end users. This initiative, announced via a series of technical whitepapers and public testnet launches over the past quarter, is now entering a closed beta phase with selected node operators.

Technical indicators on ZKC’s price chart have shown mixed signals, with the RSI hovering near oversold territory and the 50-day moving average significantly above the 200-day line. Analysts project that the current price action could reflect a temporary consolidation phase after a prolonged bearish trend, but emphasize that structural demand is yet to stabilize.

Backtest Hypothesis

A recent backtesting strategy evaluated the performance of a time-based rebalancing approach that buys ZKC when the 10-day EMA crosses above the 20-day EMA and sells when the inverse occurs. The strategy was tested over a 12-month period and showed a maximum drawdown of 72%, with a winning trade percentage of 53%. Although not ideal in a downtrend, the strategy demonstrated higher returns in periods where ZKC showed short-term volatility, aligning with the recent 24-hour rally. The hypothesis is that if the protocol’s Layer 2 implementation gains traction, the algorithm could see a marked improvement in its risk-reward profile in the near term.