It's planted too deep, it seems, and the soil is too rich - cut it with 1/2 perlite (one of many methods to make the soil more porous). There should be some stem showing. Depot it (since you need to anyway, and it won't mind being out of soil for a bit, to dry out if nothing else) and show us what you have - I would suspect it should be raised an inch or two, if not more.

I would still not water it until the roots take. It looks a ok!