ZKC - -4002.77% Over the Past Year During Significant Decline
As of SEP 25 2025,
ZKC has been in a sustained downward trend, with its value tumbling by more than 4000% in just the previous month. The asset continues to exhibit persistent bearish momentum across various timeframes, with no clear indication of a near-term recovery. This sharp decline has prompted both institutional and retail investors to reassess their technical and fundamental outlooks.
Technical analysis shows a significant divergence between the 20-day and 50-day exponential moving averages (EMAs), further supporting the negative trend. The 20-day EMA is well above the 50-day EMA, creating a bearish crossover that points to continued weakness. Additionally, the RSI has fallen into oversold levels, reflecting intense selling pressure. However, given the prevailing strong bearish sentiment, an oversold RSI does not necessarily imply a quick rebound, as downward momentum may persist.
The recent steep decline has reignited debate about ZKC’s underlying fundamentals. Experts suggest that the asset’s poor performance is largely influenced by negative market sentiment and a noticeable drop in on-chain activity. Key blockchain indicators, such as transaction counts and active wallet addresses, have been trending downward, indicating waning user and developer engagement. These factors contribute to a pessimistic short-term outlook for recovery.
Backtesting Approach
One suggested method for backtesting potential trading responses to ZKC’s price movements involves using a combination of EMA crossovers and RSI thresholds to identify entry and exit points. This approach would focus on a long-only strategy, generating buy signals when the 20-day EMA moves above the 50-day EMA and the RSI remains in a neutral zone (between 40 and 60). Sell signals would be issued if the 20-day EMA drops below the 50-day EMA or if the RSI enters overbought territory (above 70). The goal is to capture sustained momentum while avoiding the highly volatile swings that have characterized ZKC’s recent price action.
