When I bought this plant from a local flower shop it had sad looking roots, but I just couldn't resist such pretty flowers. It had six flowers when I bought it, and it has now rebloomed on the same spike with five additional buds. I am happy to say it is growing new roots since it was repotted in sphagnum.
It is very cute, Elorchid, and obviously it appreciates the care you've been giving it. Was it previously potted in bark or moss?
Thanks for your comments. Rangiku, it was previously potted in bark. I tried to keep it quite dry for the first few weeks after I repotted so that it could adjust to the more wet conditions, and the bark was very deteriorated, so the plant was probably used to moist conditions.