- The price of the landfill is falling amid major European concerns as gas prices hit new highs.
- MATIC’s price is facing headwinds from several European countries that need to issue emergency bailouts to energy providers.
- The third largest economic bloc could plunge the world into a deep recession.
Polygon (MATIC) price should take a big step forward as the price action drops in a domino effect that creates too much headwind for the bulls. Positions are sold as reservoirs of the Relative Strength Index. Expect further selling this week as a reversal is far from close and a default by an energy supplier in Europe could trigger a Lehman Brothers domino effect.
The price of MATIC is threatened by the crisis of 2008
Polygon’s price fell more than 3% during European trading hours after news late Sunday that Finland and Sweden were forced to bail out several energy companies that were close to default. The risk of default by an energy supplier in the European region could trigger a massive domino effect that would equal or even surpass the collapse of Lehman Brothers in 2008. Investors are fleeing risky assets and seeking safe haven with a strong dollar, further stifling cryptocurrencies.
MATIC price is currently hanging by a thread from the 55-day Simple Moving Average (SMA) around $0.862. As long as it holds, the uptrend is still guaranteed. Though if this 55-day SMA gives way to the bears, expect a crash to $0.750 with a 15% loss.
MATIC/USD daily chart
Supported by the 55-day SMA, the alternative scenario could see a return to growth once the initial market reaction to the euro negative news begins to wane. Expect price action to return to $0.900 with a $0.960 profit target based on forecasts. This will mean a solid 9% profit for traders.