It looks like the soil is saturated with water
If the soil is too damp and does not drain then the seedling will die... It will suffocate, try to remove it and transplant it into a combination of sand, perlite, mulch, finely chipped tree bark, and some soil, the soil should be about 30% of the items listed.. The more air that gets to the roots the better the canary will be... Whenever I use mulch and sand or pine bark the roots grab better and the overall growth of the palm will become larger... Also with the canary island date palm the waterings should be watered and then let to dry and then watered and so forth...you should let the soil dry up before watering it..
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