SoundHound AI's 15min chart triggers RSI Overbought, Oversold signals detected.

According to SoundHound AI's 15-minute chart, the Relative Strength Index (RSI) has reached an overbought level and oversold level at 13:15 on July 21, 2025. This indicates that the stock price has experienced a rapid increase and is now higher than the fundamentals can support, or has experienced a rapid decline and is now lower than the fundamentals can support.

According to the 15-minute chart, the Relative Strength Index (RSI) for SoundHound AI (SOUN) reached an overbought level at 13:15 on July 21, 2025. This indicator suggests that the stock price has experienced a rapid increase and is now higher than the fundamentals can support. The RSI is a momentum oscillator that measures the speed and change of price movements, with readings above 70 indicating overbought conditions and readings below 30 indicating oversold conditions.

SoundHound AI's stock has been on a strong upward trend, gaining 19.38% since June 30, 2025, and 15.93% over the past two weeks [1]. The stock price rose by 1.34% on the last trading day (July 18, 2025), reaching $12.81. However, the RSI reading at 13:15 on July 21, 2025, indicates that the stock may be overvalued in the short term.

The overbought condition suggests that the stock could be due for a correction. Traders often use the RSI to identify potential reversals in the stock's price trend. An overbought RSI can indicate that the stock is overvalued and may be due for a pullback. However, it is essential to consider other technical indicators and fundamentals before making trading decisions.

SoundHound AI's fundamentals have been strong, with revenue growth of 73% year-over-year (YoY) in Q1 2024 and a $1.2 billion sales backlog [2]. The company's expansion into the healthcare sector and strategic collaborations with global giants have driven its growth. However, investor Julia Ostian has expressed caution about the stock's high valuation (40x trailing sales) and decreasing gross margins [2].

Despite the overbought condition, SoundHound AI's strong fundamentals and growth prospects may support its stock price in the long term. The company's cash reserves, backlog growth, and industry specialization position it to outperform as voice AI becomes more prevalent in high-volume industries [2]. However, near-term volatility is possible, and investors should exercise caution given the high valuation and decreasing gross margins.

In conclusion, while the RSI indicates an overbought condition for SoundHound AI's stock, the company's strong fundamentals and growth prospects may support its stock price in the long term. Investors should consider other technical indicators and fundamentals before making trading decisions.

References:
[1] https://stockinvest.us/stock/SOUN
[2] https://www.ainvest.com/news/investor-warns-soundhound-ai-stock-overvalued-promising-growth-2507/