No Maria, you've got to cut back more until you have good green viable stem. And as Jeff (CactusMcHarris) has said you don't need anything on the cut end. I leave cutting in warm indirect light sometimes for weeks and they just root from the natural humidity in the air. Having said this, it might not happen in very low humidity areas, but here in Michigan we almost always have 40% ~ 50% RH. I just cut this from one of my Echeveria to demonstrate what you want to see after cutting. I would allow my cutting to callous for at least a week until I see the cut end dry and looking like a callous on your hand or foot; it will look hard and dry and somewhat rough. The mix is something I make but you don't have to have the same thing. Again, as Jeff has said, Perlite is readily available at any Big Box store or Garden Center. Do NOT use regular sand because it packs down too much and dries slowly. If you have a problem finding something course or gritty, go to a pet store/Walmart/Target and ask for bird gravel; the stuff used on the bottom of a bird's cage that they eat to help digest food. It will be a bit pricey but if all you need is a small quantity, it will work. I'm personally not a fan of "Topsoil" as a portion of my mix because it won't dry quickly for me.

when you root a leaf the "mother" leaf will shrivel after roots and a new little plant has started. its true, they do loose bottom leaves but not that many...i think you are watering too much. just stop watering and let it dry out. leave it dry for at least a week.

Dig it up, and take a look at the roots. Spongy and brown roots and causes are a bad sign. It appears you are using regular potting soil. This is okay if the soil is allowed to dry out completely. Water logged soil combined with cool temperatures can spell very bad news for Adeniums. I keep my Adult plants in a gritty mix to prevent over watering. My gritty mix is equal parts granite chips, calcined diatomaceous earth floor dry, and fir bark. My seedlings are growing in a 50/50 mix of floor dry and coconut coir.

That tends to happen when water gets stuck in between leaves, so I think you may need to dig this guy up:(. Rot like that will most likely spread all over. When and if you decide to dig up, sooner ther better, check everywhere for rot. You will have to cut until you see good healthy flesh. Depending how much rot there is this the plant will loose a lot of size. That's ok the rot has to go:). Once cut keep in a dry shady spot till it calluses over. Since it's humid where you're at you can sprinkle some cinnamon on the fresh cut. This acts as a natural fungicide. A callus should form in about a week or so. Then place on top of some mix and keep in an area with filtered light and no water till roots form. Once roots form you can start giving water and acclimating to more light. Goodluck:). Bloodspots are really beautiful.