Answer: You were right in correcting the rootbound condition of your azalea, but the timing wasn't the best. Not only is your plant reeling from the transplanting shock, it's also dealing with hot weather and rapid moisture loss through the leaves. This is the time of year when the plant will be developing flower buds for next year's bloom, so you may have compromised next spring's show. However, the digging and replanting of your shrub should not be fatal to it. Give it a thorough soaking once each week until fall rains take over. It should perk up soon.
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