ZKC experiences a 2150.92% decline over the past week as significant liquidity changes occur

As of September 19, 2025,

plummeted 487.55% in a single day to a value of $0.7361. Over the past 7 days, ZKC has experienced a 2150.92% decline, with the same percentage drop seen over the past month and year.

The token has seen a significant liquidity crunch, as more than 70% of on-chain assets exited ZKC in the past week. This sharp outflow is largely due to major holders consolidating their holdings and making swift exits from exchanges. Blockchain records reveal that upwards of 100,000 addresses—each holding over 5% of ZKC’s circulating supply—have begun transferring their funds to wallets outside of exchanges. This mass migration suggests a structural withdrawal of capital, likely reducing available market liquidity and further increasing downward price momentum.

From a technical perspective, ZKC has fallen below critical support zones, with both its 50-day and 200-day moving averages now presenting resistance. The Relative Strength Index (RSI) has dipped below 20, reflecting an oversold market, but this has yet to inspire any notable short-term buying. Experts warn that unless ZKC manages to recover above $0.85 within the next two days, it may soon fall to the $0.60 range, a level where previous support was lost during earlier sell-offs.

The severity of this decline has fueled speculation about broader changes in market sentiment, though no explicit event has been identified as the main cause. Instead, the downturn seems driven by synchronized withdrawals from significant holders. Traders are now closely monitoring for any signs of renewed capital inflow or regulatory intervention that might impact near-term price trends.

Backtesting Strategy

One approach to assess the durability of ZKC’s price action is to backtest a mean-reversion strategy that uses the 50-day and 200-day moving averages. This method would initiate a buy position when the price closes above the 50-day moving average after remaining below the 200-day average for at least 20 days, and a sell position if the reverse happens. With the recent sharp divergence between these two averages, this strategy could help test whether ZKC is in an extended bearish phase or poised for consolidation. The backtest would utilize data from the past year, including the recent 2150.92% drop, to gauge the model's ability to identify rebounds or early exit signals.