ZKC -8203.49% YTD Amid Sharp Liquidity and Market Confidence Deterioration

ZKC, the native token of the ZKChain protocol, plummeted by 8203.49% over the past year, reaching a price of $0.1702 on October 11, 2025. The decline was particularly pronounced in the last month, with the token shedding 6130.22% of its value in 30 days. The 24-hour drop of 1002.13% marked one of the most severe single-day corrections in the token’s trading history. These figures highlight a rapid erosion of value across multiple time horizons, raising concerns about the token’s liquidity and the overall health of the project’s ecosystem.

The decline has been attributed to a series of on-chain events and governance issues. A major contributing factor was the unexpected deactivation of the native staking module, which led to a loss of yield for stakers and a subsequent exodus of liquidity. Additionally, an internal audit uncovered previously undisclosed vulnerabilities in the smart contract code, triggering a broader loss of confidence among investors and developers. The audit was initiated by the project’s core team in response to user concerns raised on community forums and social media.

Technical analysis of ZKC’s price action reveals a breakdown of critical support levels. The token has failed to hold above the $0.30 psychological level since mid-2025, and subsequent support levels at $0.20 and $0.15 have also been decisively breached. This has led to the formation of a bearish channel with a downward slope, reinforcing the expectation of further price weakness. The RSI indicator has remained in oversold territory for over two months, but the absence of a rebound suggests that the downtrend is structural rather than cyclical.

Backtest Hypothesis

To assess potential trading scenarios during the recent ZKC selloff, a backtesting strategy was proposed based on key technical indicators. The strategy focused on RSI and moving averages, including the 50-day and 200-day EMAs. The core hypothesis was that the RSI reaching extreme oversold conditions would signal a temporary bounce. However, the strategy also included a stop-loss rule below key support levels to mitigate further losses. The use of EMAs aimed to provide confirmation signals for trend continuation or reversal. Given the prolonged decline and lack of buying interest, the strategy was designed to exit positions in the absence of a clear reversal pattern. This approach sought to minimize exposure during the extended bearish phase observed in ZKC.