Azalea roots are like that, spongelike and very fine.
I would plant this youngster in a larger training pot to let it get girth on the trunk.
The humidity tray is doing nothing to it, unless it's there just as a dripping tray in order to not stain your furniture with water.
Fertilize it with Miracid. They love it.
PS- Ahhh... It's not "REPORT", but "REPOT".