ZKC Drops 288.29% in 24 Hours Amid Market Turbulence

On OCT 4 2025, ZKC experienced a dramatic decline, dropping 288.29% within 24 hours to reach $0.3346. Over the past week, the token plummeted 3236.07%, while its 30-day price erosion hit 2347.55%, and its annual decline reached a staggering 6447.42%. These figures underscore a severe and prolonged downturn, raising questions about the underlying causes and potential future developments.

The price collapse has drawn attention to ZKC’s technical indicators and chart patterns. Over the past several months, the asset has failed to maintain any discernible bullish momentum, instead forming a prolonged bearish trendline that has remained intact since the beginning of the year. Analysts have noted a consistent breakdown in key support levels, with no significant bounce-back observed even in periods of lower volatility. The absence of any discernible reversal signals or candlestick formations suggests that the downward trajectory may continue in the near term.

Technical analysis of ZKC reveals a deepening bearish bias across multiple timeframes. The 50-day and 200-day moving averages have formed a pronounced death cross, with the short-term average significantly below the long-term average. Additionally, the relative strength index (RSI) has remained in oversold territory for extended periods, indicating a lack of buying pressure and a potential continuation of the decline. These metrics collectively point to a weak market sentiment and a structural imbalance between supply and demand.

Backtest Hypothesis

A backtesting strategy designed to analyze ZKC’s recent behavior was proposed to evaluate the potential outcomes of a bearish continuation model. The strategy is based on a set of predefined technical indicators and price action patterns observed in the asset’s historical performance. The approach involves setting a sell signal when the RSI remains below 30 for three consecutive periods and when the price closes below the 200-day moving average. The exit condition is triggered when the price breaks above the 50-day moving average or when the RSI rises above 50. This model aims to quantify the effectiveness of a strict bearish approach in navigating the current market environment. Given the prolonged breakdown in ZKC’s technical structure, the backtest could offer insights into whether a continued short position would have been profitable in recent market conditions.