First of all, many Oncidiinae do shrivel their bulbs as they age. The new growth looks strong but I do notice that the plant is planted directly into an internally glazed stone pot which could be preventing the roots drying out. Nothing wrong with stone pots, but glazing does hinder air/moisture flow. I would be inclined to unpot the plant and look at the roots - strong white is good, soggy brown is bad. repotting often revitalises plants anyway.