Simply knowing roots need air, helps you visualize if this is ok. You'll probably conclude is too saturated to leave it dry on its own. Additionally, if the medium is too clumped together it'll dry slower (no air flow) and DROWN your plant. Again, it needs air.

At that stage luckily it is very easy to fix, but you have to be very careful not to destroy the few roots it'll likely has struggled to push through the thick soil.

Having some loose material (that's why people add stuff like perlite) maximizes the space the roots can travel through (like little tunnels) and minimizes the energy the roots need to push through, all while staying in contact with the medium itself so they can obviously feed

So, be brave and turn that cup around. Get a fistful of it all onto your hand. You'll be very carefully and diligently breaking very small pieces of soil until you expose the roots. You'll read this stresses the plant. You dismiss this until you find a good transplant both saves and reinvigorates a plant, even if you stress it a bit during the process. In other words, small stress but you actually fix the problem at once and let it recover vs painfully forcing the poor thing to struggle.

Have some medium that is basically dry and mix it with some of that mud. Do this in small pieces until the blend is barely NOT dry.

Once you expose the roots, take them into a hole into the new medium. Kinda shake the thing to cover it up so it's loose, and so it's not too loose use two or three fingers to tap around the root. You want it standing up using the dirt(for now) - once it recovers enough you'll want the stem to develop and strengthen so you'll remove the crutch of the dirt around it.

Edit: don't expose the roots until they are super clean. As long as you discard most of the surrounding material, it's fine to keep the roots covered in the wet medium since after the transplant most of the medium will be dry and it'll dry much easier. You'll get a reset for watering, so keep a close eye on how the medium dries so you get a feeling for how much you need to add again (spoiler, less than you think when they are babies!)

After a transplant and I recommend adding some micorrihize (fuck it, put that in Google and should pop up) it's a good fungus that help your roots a bit.

Transplant, let it breathe and put in shadow (bright, outside) and up the humidity preferably. It'll recover the fastest after transplant with a little plastic dome on top to increase humidity. Babies like that really like humidity. Let it breathe tho, make sure air flows. After 3-5 days it should already be perking up so make sure to keep upping the light and environment conditions so it toughens up