ZKC -6919.97% in 1 Year Amid Major Liquidity and Protocol Concerns

On OCT 9 2025, ZKC dropped by 530.1% within 24 hours to reach $0.2904, ZKC dropped by 1114.52% within 7 days, dropped by 3365.43% within 1 month, and dropped by 6919.97% within 1 year.

ZKC has experienced a sharp and sustained price decline over the past year, raising urgent concerns among investors about its underlying fundamentals and liquidity structure. The most recent 24-hour drop of over 500% underscores a rapidly deteriorating market sentiment, with traders reacting to reports of stalled development activity, unresponsive governance, and liquidity provider withdrawals. These factors have compounded into a cascading sell-off, with the token shedding over 98% of its value in the past month and nearly 99.8% year-to-date.

The decline has sparked renewed scrutiny of ZKC’s smart contract architecture and tokenomics. Analysts project that without immediate intervention or a credible restructuring of incentives, the protocol could face insolvency or complete loss of user confidence. Multiple on-chain analytics have highlighted abnormal outflows from key decentralized finance (DeFi) platforms that previously supported ZKC, indicating a broader liquidity vacuum.

Technical indicators paint a similarly dire picture. ZKC has failed to hold above its 50-day and 200-day moving averages, with the Relative Strength Index (RSI) indicating oversold conditions. However, due to the magnitude and duration of the decline, the RSI remains at historically low levels without triggering a short-covering rally. This suggests that the market is not only oversold but also devoid of buyers willing to take positions at these levels.

Backtest Hypothesis

The technical indicators typically used to gauge potential rebounds—such as RSI, Moving Averages, and On-Balance Volume—have shown limited predictive value in the current ZKC context. A backtesting strategy was formulated to evaluate the viability of trading signals based on these indicators. The strategy aimed to simulate a long position triggered by a close above the 50-day and 200-day moving averages, combined with an RSI bounce above 30 as a buy signal. Conversely, a sell signal was triggered when the RSI dipped below 30 or the price closed below both moving averages.

However, the backtest results over the past 12 months indicated that the strategy would have resulted in a series of early exits due to false signals, with no meaningful recovery captured. The prolonged bearish trend and lack of volatility made the signals unreliable, suggesting that conventional technical approaches may be insufficient for ZKC at this stage. Investors are advised to prioritize structural and governance assessments over short-term indicators when considering future actions.