This hatchling appears to be... dead?

Perhaps not. It seems to be active during the night.

Young dragons are relatively defenseless. They are born with relatively soft scales, which are shed and replaced with harder ones as the hatchling matures. Once a hatchling’s wings grow in, it typically marks the beginning of maturation. At this point they are often capable of hunting on their own and are usually left alone by their mother.

Phobia is afraid of anything. Animate or inanimate, it scares her to death-literally! She never socializes with others, or takes part in any hunts or activities. She sits alone, scared, and wondering in a dark, vast, obscure cavern. Nobody cares about her—they tend to ignore her very presence, as if she is nothing. Only Cursed Bloodblade, her true friend, knows about her ancient power. She holds the power of telekinesis, the ability to move objects with her mind. She rarely ever uses it or even thinks about it. Among the others she is a tiny speck-powerless, worthless... meant to be tossed away. Seth, founder of the Bloodblades, was frightened by her paranormal power. Terrified. He knew that the further generations were getting more vast in their powers, and he would no longer be considered an almighty 'god' amongst his followers. So, he stopped her growth. He banished her to an underground cavern where she still sits.