This is a case of rejection with a request to revise and resubmit as a new submission. This kind of rejection is becoming increasingly common in cases of major revisions that might take time. So basically, the journal editor thinks that your paper has some merit, but does not want to rush you with the revisions by providing a deadline. You can revise the manuscript as suggested and submit it as a new submission. When you submit it the second time, make sure you provide the previous manuscript id and point-by-point responses to the reviewer comments. So, to answer your question, you still do have a chance! All the best!
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