Ondas Holdings Soars 20% Amid Bullish Momentum, but Overbought Signals Raise Caution for Investors

Technical Analysis

Ondas Holdings Inc. (ONDS) closed at $1.47 on June 2, 2025, marking a notable intraday gain of 20.49%. The stock’s intraday range was $1.26 to $1.52, approaching its 3-month target price of $1.50. The relative strength index (RSI) stands elevated at 85, indicating overbought conditions which may suggest a short-term pullback or consolidation. The 50-day moving average at $0.89 and the 200-day moving average at $1.10 position the current price well above these trend markers, signifying strong recent momentum. The MACD remains positive at 0.06, supporting bullish momentum. Average daily volume is effectively doubled today at 18.44 million versus the average 9.42 million, reflecting heightened trading interest.

The stock’s next support lies near $1.22, with no significant resistance clearly established above current prices, potentially implying limited immediate overhead supply but also an absence of strong breakout targets. The ATR appears anomalous at 8.25, likely a data inconsistency given the price scale, and thus excluded from volatility assessment.

For June 3, the stock may experience some profit-taking or sideways movement owing to RSI overextension, yet the strong volume and positive technical indicators offer potential for further gains marginally above $1.50. Over the next week, the trajectory could see consolidation or a mild correction as traders digest the recent price surge.

Fundamental Analysis

Ondas Holdings maintains a market capitalization near $208 million. Despite the positive price action, profitability metrics remain weak with a trailing twelve-month EPS of -$0.59 and a negative P/E ratio of -2.57, underscoring ongoing losses. The next earnings report, scheduled for August 13, 2025, remains a key event that may materially impact sentiment.

The stock’s year low at $0.54 contrasts with a year high of $3.40, indicating high volatility and substantial risk. Given the negative earnings and absence of sustainable profitability, the intrinsic value is difficult to validate at current levels, and likely remains below the recent peak price points. However, the significant recent momentum and institutional interest reflect market anticipation of future growth or turnaround potential.

From a long-term investment perspective, the lack of earnings, volatility, and overbought technical signals introduce significant risk, but the performance above key moving averages and improved consensus sentiment signals cautious optimism conditional on operational improvement.

Intrinsic Value and Long-Term Potential

With persistent negative earnings and an unprofitable business model, intrinsic value appears below the current market price, implying an overvaluation relative to fundamentals. Long-term growth hinges on Ondas Holdings' ability to transition to profitability and deliver on growth catalysts by the upcoming earnings cycle. Until there is demonstrable improvement in cash flows or earnings, the stock should be considered speculative.

Intrinsic valuation models would need significant projection revisions upwards to justify the current near-$1.50 price level. Nevertheless, for investors with a higher risk tolerance, the recent volume surge and technical strength offer potential upside contingent on operational turnaround.

Overall Evaluation

The stock presents as a Buy candidate based on the collective indication of strong price momentum, volume expansion, positive MACD, and a consensus analyst outlook favoring a buy. However, elevated RSI warns of short-term overbought status warranting careful monitoring of price action for any reversal signals. Fundamental weaknesses and earnings negativity temper enthusiasm but do not negate the short-term technical strength and near-term potential for continued gains, given momentum and market sentiment.

In summary, Ondas Holdings demonstrates bullish technical momentum with limited fundamental support at present. It is suited to investors prioritizing momentum with tolerance for risk and volatility, rather than value-focused or income-seeking profiles.