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
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.