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ZKC surged by 411.85% within 24 hours as volatility unexpectedly soared

ZKC surged by 411.85% within 24 hours as volatility unexpectedly soared

Bitget-RWA2025/09/20 04:44
By: CryptoPulse Alert
- ZKC surged 411.85% in 24 hours to $0.7685, contrasting with 1847.59% declines over seven days, a month, and a year. - The surge was driven by speculative buying and automated strategies, not fundamentals, amid overbought technical indicators (RSI >70, MACD crossover). - Market participants misread signals or faced sudden liquidity influx, while the 200-day moving average remains bearish. - A backtest strategy tested RSI/MACD crossovers to capture volatile rebounds in deep bear markets, aligning with ZKC'

On September 20, 2025, ZKC experienced an extraordinary 411.85% surge in just 24 hours, climbing to $0.7685. This sudden spike stood in sharp contrast to its significant long-term losses, which included declines of 1847.59% over the last week, month, and year.

This dramatic price action caught the eye of both individual and institutional investors, as it broke away from the persistent bearish pattern ZKC had been following. The asset had faced repeated failures to surpass important resistance levels during its extended downtrend. The latest rally, however, suggested a notable shift in market sentiment, partly driven by heightened trading on large liquidity pools and a surge in on-chain transaction activity.

The notable 24-hour increase was not prompted by any fundamental developments or official announcements; instead, it arose from speculative buying and algorithmic trading systems reacting to a breakout setup. Experts believe that much of the volatility is the result of automated trading and may not be maintained unless new drivers emerge.

Technical analysis shows that ZKC had already been in overbought territory for several days ahead of the rally, with the RSI moving above 70 and the MACD crossing above its signal line. These technical signals are generally seen as signs of a possibly overextended trend. Nevertheless, the abrupt change in price suggests that many traders may have misinterpreted these indicators or were unprepared for the sudden increase in liquidity.

The 200-day moving average is still on a downward trajectory, and ZKC remains well beneath it, signaling that the recent 24-hour jump has not altered the overall bearish outlook for the asset.

Backtest Hypothesis

A backtesting

was recently conducted, drawing on the technical signals that appeared ahead of ZKC’s rapid rise. This method relied on RSI and MACD crossover signals for entries, with predefined stop-loss and take-profit parameters for exits. The intention was to exploit brief momentum reversals in assets experiencing prolonged bearish phases.

The logic behind this strategy assumes that assets entrenched in bear markets can sometimes see sharp, volatile rebounds when liquidity builds up quietly and is suddenly deployed. Such moves are risky but can yield substantial returns for traders who can respond swiftly.

The backtest aimed to evaluate whether this method would have effectively captured the ZKC price action, accounting for factors like slippage, spreads, and trading fees. While specific results were not provided, the strategy’s principles appear consistent with what was observed in price behavior.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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