It's hard to tell for sure, but either way he will likely be fine. Malpositioned chicks often times hatch okay, just keep an eye out. That is an awfully big yolk left, thats my main concern. Theres still quite a while to go yet. Be careful not to chip away anymore shell, that's just going to dry...
Firstly, water testing is not reccomended. The results can be unclear, and it can be dangerous (especially if there's any tint crack or hole in the egg that you might have missed). Candling is far far safer and generally more helpful.
Secondly, making a hole in the egg does not help veins to...