ZkPass Faces Severe Pressure: Understanding the $ZKP Slide Within Broader Market Selloff

AirdropSweaterFan · 2026-01-05T14:29:41+00:00

ZkPass ($ZKP) faces significant losses in the struggling altcoin market, dropping 25% in 24 hours and 35% since its listing. Low sentiment indicators signal distress, driven by selling pressure from recent airdrop distributions amid a broader market downturn. Analysts are eyeing $0.135 for potential recovery.

AirdropSweaterFan

2026-01-05 14:29:41

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The cryptocurrency market’s broader altcoin segment is currently navigating treacherous waters, and ZkPass ($ZKP) has emerged as one of the most notable casualties in this downturn. Recent trading activity has seen the token slide approximately 25% over a 24-hour period, extending losses to nearly 35% since its December 19 listing date. This sharp correction underscores the intense selling pressures now gripping the altcoin ecosystem.

Market Sentiment Hits Critical Levels

The weakness plaguing ZKP is far from isolated. Across the broader altcoin complex, technical indicators are flashing distress signals—most notably, the Relative Strength Index (RSI) for altcoins has touched historical lows, suggesting oversold conditions rarely seen in previous cycles. The crypto fear and greed index stands at 24, deep within the “extreme fear” territory, reflecting widespread investor anxiety and capitulation among retail traders.

Breaking Down ZKP’s Decline

Multiple factors have converged to create this perfect storm for ZKPass. The primary culprit appears to be elevated selling pressure following recent airdrop distributions, where recipients often liquidate their holdings for immediate returns. Compounding this pressure is the broader cryptocurrency market’s recent downturn, which has created a cascading effect across smaller-cap altcoins that lack the fundamental support mechanisms of tier-one assets.

Technical Levels and Recovery Potential

From a technical standpoint, analysts are monitoring $0.135 as a critical support zone. Should this level hold, the current pullback may be reframed as a necessary market correction rather than a signal of fundamental project failure. The key question investors must ask is whether this represents capitulation and opportunity, or the beginning of a deeper structural decline. Given the broader market dynamics at play, much depends on when sentiment begins to stabilize across the altcoin sector as a whole.

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