A butterfly effect means issues for Polygon’s MATIC this morning

Polygon price slips on the back of major European issues, with gas prices jumping to new records.
MATIC price gets headwinds from several European countries needing to issue emergency bailouts for energy suppliers.
The third biggest economic block could put the world into a deep recession.

Polygon (MATIC) price is set to take a big step lower as price action tumbles in a domino effect that creates too many headwinds for bulls to bear. Positions are being sold as the Relative Strength Index tanks. Expect to see a further sell-off this week as a turnaround is nowhere near, and a default by an energy supplier in Europe could trigger a Lehman Brothers domino effect.

MATIC price is facing a 2008 crisis

Polygon price tanks over 3% during European trading hours on the back of news Sunday evening that Finland and Sweden had to bail out a few energy companies that were near default. The risk of one energy supplier defaulting in the European region could trigger a massive domino effect that would match or even succeed the collapse of Lehman Brothers in 2008. Investors are fleeing risk assets and searching for safe havens with a lot of dollar strength, strangling cryptocurrencies yet again.

MATIC price is currently hanging by a thread on the back of the 55-day Simple Moving Average (SMA) near $0.862. As long as that holds, the uptrend is still secured. Although, should that 55-day SMA give way to bears, expect to see a collapse back to $0.750 with 15% of losses

MATIC/USD Daily chart

With support from the 55-day SMA, an alternative scenario might propose a swing back up once the initial market reaction from the negative euro news starts to fade. Expect price action to pop back to $0.900 with the profit target at $0.960 back on the forecast. That would mean a solid 9% of gain for bulls to book.

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