The damsel has pooped enough to kick off the cycle.
Now take it out before it dies. There's really no need to use a fish to cycle a tank anymore. You could have dome the same thing with some fish food. A cube of Marine Cuisine in the tank would have done the same thing.
Lot's of people used to use damsels because they are hardy, but I think it's cruel. Why subject the little guy to all that ammonia and nitrite? All you need is something to rot. Fish food rots. Just as fish poop rots.
Take it out and give it back to the store. Wait about 6 weeks and then test for ammonia, nitrite and nitrates. If ammonia and nitrite are both zero, then you can do a 25% -- 50% water change to remove the nitrates. When you changed enough water to drop nitrates below 20, you are safe to put in a fish and a coral.
Did anyone mention damsels are EVIL? If you leave that fish in the tank, you can pretty much bet it will kill any other fish you put in the tank.