ZKC plummets by 1064.18% over 24 hours as technical conditions worsen significantly
- ZKC plunged 1064.18% in 24 hours, with 2761.46% 7-day and 3628.14% monthly/annual declines amid severe technical deterioration. - RSI below 30 and bearish MACD crossover confirm oversold conditions, while price remains below 50/200-day moving averages. - Analysts warn of prolonged bearish momentum unless reversal patterns or fundamental shifts emerge to alter market sentiment. - A backtesting strategy using MACD/RSI signals and trailing stops aims to capture sustained downward momentum with risk-controll
On September 25, 2025, ZKC experienced a dramatic decline of 1064.18% in just 24 hours, falling to $0.5978. Over the past week, the token dropped by 2761.46%, with losses extending to 3628.14% over both the past month and year.
This steep decline in ZKC coincided with a significant weakening in major technical indicators. The Relative Strength Index (RSI) plunged below 30, indicating the asset is heavily oversold, while the Moving Average Convergence Divergence (MACD) signaled a strong bearish crossover. These developments point to intensifying downward momentum in both short- and medium-term periods. Throughout the day, price movements showed little resistance, and the persistent downward trend reflected a lack of confidence among short-term traders.
Adding to the negative outlook, the 50-day and 200-day moving averages have separated considerably, with the current price trading far beneath both lines. This pattern suggests a sustained bearish trend. Experts believe this downward phase will likely persist unless a clear reversal pattern forms or a major event shifts market sentiment.
Backtesting Hypothesis
A backtesting plan has been proposed to assess how well a technical trading strategy performs under these market conditions. The approach involves entering trades when a bearish MACD crossover is confirmed and the RSI is below 30, setting a stop-loss just above the latest swing high, and aiming for a profit target at 50% of the distance between the entry point and the nearest support. This method seeks to take advantage of ongoing bearish momentum while reducing the risk of false signals.
The strategy also uses a trailing stop to secure profits if the price starts to recover. Historical data from previous bearish cycles will be analyzed to determine how the strategy would have performed in similar scenarios. The underlying hypothesis is that, if bearish momentum continues, this system should deliver favorable risk-adjusted returns for ZKC in the current market environment.
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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