Despite 53 mln Shiba Inu burn, why SHIB’s breakout depends on DOGE

• Shiba Inu burn rate surged on election day, fueled by the SHIB community. 
• Despite a slight price rise, a breakout still depends on DOGE’s momentum.

Coincidence or not, Shiba Inu [SHIB] recently caused a stir in the crypto space with a staggering 3,674% surge in Shiba Inu burn rate on U.S. presidential election day.

SHIB traditionally relies on its burning mechanism, sending tokens to inaccessible wallets to reduce supply and boost value. 

However, the timing of this surge is noteworthy.

The spike drew attention and coincided with renewed interest in SHIB’s price as traders capitalized on election dynamics, causing SHIB’s price to climb.

What is behind the Shiba Inu burn?

The memecoin market has certainly been buzzing as BTC claimed a new ATH, which is typically a catalyst for broader crypto market rallies. 

DOGE’s[DOGE] performance, with a 12% weekly gain, is a clear standout. Its rise was largely attributed to Elon Musk’s influence. 

However, this cycle seemed different from the previous one.

Unlike past memecoin rallies, this is not a “supercycle” where a wide range of memecoins like Popcat [POPCAT], dogwifhat [WIF], and others surged in tandem.

These coins, once high performers, are now posting losses, signaling a potential shift in investor sentiment.

AMBCrypto examines how Shiba Inu’s burn strategy has capitalized on this shift, with SHIB still hovering in the green.

Source: ShibaBurnTracker

According to the chart, the Shiba Inu burn rate spiked dramatically on election day.

Over 53 million SHIB tokens were burned in 24 hours, including a single transaction of nearly 29 million tokens.

This burn surge helped SHIB post a daily gain of over 6%. However, its price remained in an 8-month slump, failing to retest the $0.000030 mid-range.

Routine burns alone may not be enough to trigger a breakout. Trading at $0.000018 at press time, SHIB needs to surpass the $0.000020 threshold for any meaningful upside. 

Moving forward, SHIB will likely need to tap into DOGE’s momentum to sustain its bullish outlook and capitalize on potential future gains.

Is DOGE the secret catalyst for SHIB?

SHIB’s surge in trading activity comes at a time when Dogecoin is also seeing significant price gains. DOGE surged by 20% over the same period, recently breaking the $0.20 mark for the first time since April.

Historically, the two meme coins have often moved in sync, with interest in one spurring activity in the other.

With both coins experiencing a rise in volume, SHIB could very well follow Dogecoin’s lead as the crypto market stays volatile.

Source : IntoTheBlock

A notable uptick in whale accumulation was observed the day after the election results, which favored crypto enthusiasts. Approximately 800 million DOGE tokens were withdrawn from exchanges.

This trend confirms DOGE’s potential to lead the bull cycle, especially as market volatility drives investors toward high-cap tokens.

This is where SHIB could come into play. As the second-largest memecoin by market cap, SHIB benefits from its burn strategy and DOGE’s growing traction.

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If this trend holds, SHIB could test the $0.000020 range. This is key for breaking out of its 8-month consolidation and potentially rallying to $0.000030.

Therefore, tracking DOGE’s movement will be essential for predicting SHIB’s next move.