According to the summary at orchidspecies.com, the plant originates in wet, mountain forests, which suggests to me that it needs pretty much constant moisture, but keep in mind it likes lots of air to the roots, too.
It's hard for me to imagine sphagnum needing to be watered every other day, but that, of course, depends upon your growing conditions.
Maybe you should consider a mixture of sphagnum and something else to keep the potting medium more open.