ZK -179.52% in 24 Hours as Market Sentiment Deteriorates

On AUG 31 2025, ZK dropped by 179.52% within 24 hours to reach $0.06114, ZK dropped by 554.19% within 7 days, dropped by 179.52% within 1 month, and dropped by 6883.34% within 1 year.

ZK has experienced a sharp and sustained decline across multiple timeframes, indicating a significant shift in investor confidence and market positioning. The token, once a rising name in the zero-knowledge proof ecosystem, has faced mounting selling pressure and declining participation. Analysts project that the deteriorating sentiment is driven by a combination of macroeconomic uncertainty and waning interest in Layer 2 solutions amid a broader market correction.

Technical indicators suggest that ZK is in a bearish phase, with key support levels being tested continuously. The 200-day moving average has acted as a resistance point, and the Relative Strength Index (RSI) shows an oversold condition, which may signal potential short-term stabilization. However, the Moving Average Convergence Divergence (MACD) remains in negative territory, suggesting that the downward trend is likely to persist unless there is a significant influx of buying activity.

A notable development is the increased use of ZK in decentralized applications, with recent updates to smart contract infrastructure signaling long-term potential. Despite this, short-term holders appear to be liquidating positions, contributing to the sharp drop in value. Institutional outflows have also been observed, compounding the downward momentum.

Backtest Hypothesis

The backtesting strategy in question evaluates the performance of a trading approach based on the behavior of key technical indicators observed during ZK’s recent decline. The hypothesis is that a systematic trading model incorporating RSI thresholds, moving average crossovers, and volume confirmation could have effectively navigated the volatility while mitigating downside risk. The strategy seeks to identify entry and exit points based on the interplay between price action and oscillator readings, with particular emphasis on overbought and oversold conditions.