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Thank you! I'm so bad with coral names I'll have too keep an eye on itthe coral you're talking about is called a gorgonian. they're soft corals and with the exception of a few, mostly photosynthetic.
i have several, very large, purple and tan gorgonians in my tank, and ive never actually had any of them "bleach" before. however, it is possible— gorgonians can, have, and will bleach out.
this usually happens if they're exposed to air for a prolonged period of time (like during a water change, or during fragging, etc.). warm water temps, and any contact with algae (especially cyano) will negatively effect the coral, too. but, just keep an eye on it. if it starts to peel, or you see flesh sloughing off of it, or melting/disintegrating, then its dying. but the extended polyps on each branch in your pic, means it's still decently healthy.