ZKC -1800.00% in 24 Hours Amid Liquidity Pressures and On-Chain Volatility

ZKC experienced an unprecedented decline on October 11, 2025, with a 538.38% drop in price within 24 hours to reach $0.178. This follows a 4622.84% decline over seven days, 5930.77% over one month, and an 8110.9% loss over the past year. The rapid depreciation has been attributed to liquidity constraints and increased selling pressure observed on key on-chain platforms. The movement has raised questions among market observers about the sustainability of ZKC’s position in the current market environment, with some analysts highlighting the role of algorithmic instability and token mechanics in accelerating the de-peg.

Technical indicators suggest a continuation of downward momentum. The 200-day moving average and the 50-day line have both been breached, signaling a bearish trend. The Relative Strength Index (RSI) has fallen below 30, indicating oversold conditions, while the MACD histogram has contracted to its lowest level in months. These metrics point to a market in technical freefall, where short-term buyers are hesitant and the sell-side remains dominant. Analysts project that without a significant shift in on-chain activity, the bearish scenario could persist into the near-term.

On-chain data reveals further deterioration in ZKC’s structural health. The rate of token burning has slowed considerably, and the proportion of circulating supply controlled by large holders has increased. This concentration has limited the availability of tokens in the open market, exacerbating liquidity challenges and contributing to price instability. The cumulative outflows from major exchanges over the past week have also signaled a shift in market sentiment, as traders move to avoid exposure to the asset.

Backtest Hypothesis

A proposed backtesting strategy aims to evaluate the viability of early exit signals based on ZKC’s technical behavior during its current downturn. The strategy uses a combination of the 50-day and 200-day moving averages as exit triggers, with a stop-loss threshold set at a 15% drop from the entry point. The model also incorporates RSI readings below 30 as a confirmation of bearish momentum. Historical data from similar market conditions shows that such a strategy could have minimized exposure during periods of high volatility. The framework is intended to test the effectiveness of algorithmic responses to ZKC’s recent behavior, offering a framework for future trading decisions in volatile environments.