when i first started out in marine, i bought a 2nd hand tank with an anemone and 150w MH. The nem was doing really well, then due to wanting to save a bit of money I decided to sell the MH and change to 4 D&D T5's. This was fine, but when it came to change theT5's I bought a relatively new brand because it was really cheap. My nem did the same as your's it went pale and shrunk over a period of a few months and eventually died. It was only after several more attempts with different nems that i came to the conclusion that the lighting was the problem. I've learnt that if there's anything you can't skimp on, its lighting. I've since bought reputable LED's and all corals in my tank are doing wonderfully. While this may not the problem with your tank it certainly is something you should try looking at. Hope your one makes it. It doesn't look very well, but it certainly looks like it will make a recovery if it is a lighting thing.
good luck