The short answer
Yes — watermelon is a hydrating treat, but it's mostly sugar water, so keep it small.
Why
Watermelon flesh is great for hydration on a hot day, but it's low in nutrients and sugary. The seeds are a concern: for a bird this small, large black seeds are a choking and blockage risk, so remove them.
How to feed it
Offer a small cube of flesh with the seeds removed and no rind.
How much & how often
A small piece occasionally.