Watering in small circles near the stem is garbage...........water the entire pot........what do people think happens in nature when it rains??
Roots will not grow into dry areas.
Keep things damp/moist but do not saturate.
However, it is almost impossible to over water in coco.
Do not use "humidity domes", but you do need to keep the coco moist until the seedling emerges.
A damp tea towel or other light material placed over the pot keeps things damp and still allows good air exchange.
Remove the towel as soon as you see the coco being pushed up by the emerging sprout.
If you go to week 7 in my diary "cannabis conundrums", I have posted pictures of the root system from a 3 week old seedling and this may give you an idea as to why it is important to water deep and wide and how ineffective "spritzing" or minimal watering near the stem is.