ZKC -8017.24% YTD: Market Reactions to Regulatory and Project Shifts

On OCT 11 2025, ZKC dropped by 69.3% within 24 hours to reach $0.1856, ZKC dropped by 4356.26% within 7 days, dropped by 5729.02% within 1 month, and dropped by 8017.24% within 1 year.

ZKC announced a strategic pivot in its project roadmap, signaling a shift from its prior focus on cross-chain interoperability to a narrower emphasis on ZK-Rollup optimization. This decision, detailed in an internal roadmap update made public on OCT 8, 2025, has led to significant market uncertainty. Investors reacted swiftly, with the token experiencing a sharp and prolonged sell-off. The firm has not provided a clear timeline for the implementation of the new strategy, nor has it outlined specific partnerships or upgrades to support the new direction.

Technical indicators suggest a bearish trend. The RSI has fallen below the oversold threshold, while the 50-day and 200-day moving averages show a steep downward slope. Analysts project that the lack of clarity around the new roadmap has contributed to the erosion of institutional confidence. Additionally, a recent audit flagged inefficiencies in ZKC’s gas optimization algorithms, further pressuring the asset.

The firm’s governance structure has also come under scrutiny. Community members have raised concerns over the limited transparency in the decision-making process, with several key stakeholders reportedly absent from recent meetings. This lack of engagement has heightened fears of misaligned priorities and has led to increased token selling pressure.

Backtest Hypothesis

A proposed backtesting strategy evaluates the potential effectiveness of a risk-averse approach based on the recent technical indicators and project developments. The strategy involves a long position exit triggered by a sustained RSI drop below 30, combined with a fixed stop-loss at 50% from the entry point. This would have captured the downward momentum from OCT 10 through OCT 11. The strategy also includes a time-based trigger: a 30-day time lock to avoid reentry during immediate volatility. The hypothesis is that such an approach would have mitigated exposure to the sharp sell-off and positioned investors for a defensive posture during the period of strategic uncertainty.