Zhongchao Plummets 24.98%: What’s Fueling the Selloff in the Final Hours of 2025?

Summary
• Zhongchao (ZCMD) crashes 24.98% to $0.4601, its lowest since December 2025
• Intraday range widens to $0.42–$0.56 amid algorithmic selling pressure
• Sector peers like Amazon (AMZN) dip 0.58%, signaling broader retail fragility

As 2025 closes, Zhongchao’s stock has imploded on a perfect storm of technical breakdowns, sector-wide weakness, and investor skepticism over its business model. The stock’s 24.98% drop—the steepest in months—has drawn sharp attention from traders and analysts, with the price now trading near its 52-week low of $0.3507. The move mirrors broader struggles in the internet retail space, where rising costs and execution risks are eroding confidence.

Algorithmic Selling and Model Doubts Trigger Collapse
Zhongchao’s freefall stems from a confluence of technical triggers and fundamental concerns. The stock broke below critical support levels, triggering automated sell orders and amplifying the decline. Analysts point to rising customer acquisition costs and recent supply chain overhauls as red flags, with Dingdong (Cayman)’s 7.09% pre-market drop serving as a cautionary parallel. Regulatory scrutiny and a lack of near-term catalysts have left the stock vulnerable in a risk-off environment, compounding pressure from a bearish 52-week price trajectory.

Internet Retail Sector Weakness Amplifies ZCMD’s Pain
The internet retail sector is under siege, with Amazon (AMZN) down 0.58% and peers like Dingdong (Cayman) tumbling 7.09% pre-market. Zhongchao’s collapse aligns with broader trends of declining consumer confidence and margin pressures. While Amazon’s decline is modest, its performance underscores systemic fragility in the sector, where high-growth stocks face heightened scrutiny over execution risks and profitability challenges.

Technical Divergence and ETF Correlation Signal Caution
• Bollinger Bands: Upper ($0.673), Middle ($0.582), Lower ($0.491)—ZCMD at 0.4601, near lower band
• Moving Averages: 30D ($0.5906), 100D ($0.8213), 200D ($0.9997)—price below all
• RSI: 51.5 (neutral), MACD (-0.0324) below signal line (-0.0324), bearish histogram

ZCMD’s technical profile is a textbook bear case. The stock is trading near its 52-week low and below all major moving averages, with RSI and MACD signaling exhaustion. Short-term traders should monitor the $0.42 intraday low as a critical support level; a break below could trigger a test of the $0.3507 floor. While no options are available for analysis, leveraged ETFs in the sector (if available) would face similar headwinds. Aggressive short-sellers might consider a bearish bias into the new year, but liquidity constraints and volatility extremes could limit positioning.

Backtest Zhongchao Stock Performance
The backtest of ZCMD's performance after a -25% intraday plunge from 2022 to now shows mixed results. The 3-Day win rate is 48.62%, the 10-Day win rate is 43.74%, and the 30-Day win rate is 48.20%. While the stock has positive returns in some short-term windows, the overall performance is lackluster, with a maximum return of only 3.45% over 30 days.

2026 Outlook: A Test of Resilience for ZCMD and the Sector
Zhongchao’s collapse reflects a broader struggle for internet retail stocks in a tightening macro environment. With technical indicators and sector dynamics aligned against near-term recovery, investors should brace for further volatility. Amazon’s 0.58% decline highlights the sector’s fragility, while ZCMD’s proximity to its 52-week low raises questions about its ability to attract buyers. Watch for a breakdown below $0.42 or a catalyst to reignite investor sentiment. For now, the path of least resistance is decisively downward.