ZKC -6542.15% in 1 Year Amid Sharp Technical Deterioration

On OCT 4 2025, ZKC dropped by 538.73% within 24 hours to reach $0.3254, ZKC dropped by 3416.41% within 7 days, dropped by 2551.58% within 1 month, and dropped by 6542.15% within 1 year.

The asset has experienced a dramatic reversal in fortunes, marked by a steep decline across all measured timeframes. The 24-hour drop of 538.73% was particularly volatile, suggesting potential liquidity crunches or large-scale selling pressure. The cumulative decline over the past year of 6542.15% underscores a complete breakdown in the previous valuation model, pointing to either a structural shift in market sentiment or a realization of long-term risks.

Technical indicators have followed a bearish trajectory. The RSI has moved well into oversold territory, while the MACD has crossed below its signal line with a negative divergence. These metrics typically indicate exhausted bullish momentum and a continuation of downward pressure, though the extreme nature of the current move exceeds typical bearish signals.

ZKC’s price has also fallen below several key support levels that had previously served as psychological or strategic barriers for traders. The breakdown of these levels has led to further automated sell orders, compounding the price action. There has been no indication of a short-term reversal or accumulation phase, with order books showing continuous outflows and shallow depth at higher price levels.

Backtest Hypothesis

Given the current price environment and the technical conditions observed, a backtesting strategy can be hypothesized to simulate market conditions similar to those currently affecting ZKC. The approach would involve identifying historical instances where an asset showed comparable RSI and MACD divergence, coupled with a series of broken support levels. The objective would be to evaluate the effectiveness of a trailing stop-loss strategy and a fixed-take-profit mechanism in such a bearish trend.

The backtest would measure the performance of these strategies over a range of similar historical price patterns. It would also incorporate volume dynamics and order book depth as secondary confirmation signals. The hypothesis is that in a scenario where technical indicators are deeply bearish and price levels are collapsing, a strict exit strategy could have mitigated losses or even generated profits through short selling or hedging mechanisms.