Amaryllis like to be crowded but not that much.  I would remove the red pot, you may have to cut it away it looks like it is plastic, and then repot your bulb in a small 'regular' pot with good potting soil.  Keep the upper 1/3rd of the bulb above the soil level.  Then continue to water it and provide sunlight.  If the leaves die back later in the summer you can store it as is in a cool dark area until fall and then bring it out, water it and let is come out of dormancy.  It may not die back and that is fine.  I will need the nutrients from the greenery to produce the next bloom.   You can put it outside in the pot and then bring it back in this fall. They will not survive a winter outdoors.  Growing and caring for amaryllis | UMN Extension