ZK -0.00% Amid Ongoing Technical Downtrend Amid Market Divergence

On SEP 8 2025, ZK rose by 0% within 24 hours to reach $5.3E-7, ZK rose by 0% within 7 days, dropped by 370.37% within 1 month, and dropped by 7346.94% within 1 year.

Technical indicators show ZK is consolidating in a bearish phase, with the 200-day and 50-day moving averages forming a pronounced death cross. The Relative Strength Index (RSI) remains below 30, suggesting the coin may be oversold, but the Moving Average Convergence Divergence (MACD) histogram is negative and declining, pointing to a lack of immediate reversal momentum. A critical support level at $4.9E-7 is currently being tested, with a potential breakdown likely to push ZK closer to $3.8E-7.

Analysts project that a sustained close below $4.9E-7 could trigger a reacceleration in selling pressure, particularly if the broader market indices continue their sideways consolidation. Conversely, a bullish crossover of the 10-day and 50-day moving averages could serve as a catalyst for a short-term rebound. However, given the prolonged downtrend over the past year, most on-chain indicators suggest the market is in a long-term distribution phase.

Backtest Hypothesis

A hypothetical trading strategy was designed to test performance during ZK’s current bearish phase. The strategy involves entering a long position when the 10-day moving average crosses above the 50-day moving average and exiting when the 10-day line crosses below. Additionally, a stop-loss is placed at $3.8E-7, a level that aligns with the key support identified in recent technical analysis. A trailing stop at 5% of the entry price is also included to lock in gains during upward corrections.

The backtest period spans the last 12 months, covering the most significant price drop of 7346.94%. The hypothesis aims to evaluate whether a purely technical, trend-following approach could mitigate downside exposure or capture short-term rebounds within a broader bear market. Preliminary results indicate limited profitability due to the extended bearish momentum, but the strategy does demonstrate resilience during the few upward corrections observed.