Yes, only if you can show within the cover letter (or maybe by some changes within the manuscript) that either:
- a significant aspect of your work in the original submission was misunderstood/neglected/misinterpreted or simply the process of the review (by the reviewers) was not objectively addressing a flaw in your work, or
- you can provide a strong argument based on the points aroused by the reviewers,
then I would suggest preparing a convincing cover letter and resubmiting the manuscript.
The important point is that for the resubmission after rejection, you have to convince the editor why the first decision made by her/him could and should change. Since your manuscript was already reviewed once, the editor was interested in your work in the first place, so making an argument wouldn't hurt. Based on the response you got initially, this process is just a scientific argument and even if you get a second rejection because the editor does not see the situation the way you do, nobody will hold a grudge :)