My phal has 5 healthy leaves and has a huge root system, but as it was growing a new leaf the new leaf turned yellow so I pulled it off, I covered the crown in cinnamon.
So my question is can my phal survive and can it grow a new leaf? also it's growing a spike/root.
If the crown rot has not continued to destroy the plant, then it can survive.
It may grow a keiki either at the base of the plant, or at the spike.
If you want to read more about it, you can read about how a Phal that has lost it's leaves, but still has roots is still technically alive and can recover here: http://www.orchidboard.com/community...s-here-11.html
I had a phal get a new leaf after crown rot but it depends greatly on the extent of the rot. If you stopped it quickly and not too much damage ensued, you could be okay. If not, what king has said is more likely. I just had a sedirea with a terminal spike and after completely removing the spike (a little surgery), will have to wait and see. Same situation.
I stopped my crown rot by pouring alcohol into the center for a few days. Yours looks like the damage wasn't too terrible and you might be okay. Just keep an eye on it. In the future, water by soaking the pot or adding the water under the leaves...or run a fan. Good luck!
It does not look that bad to me. But, I think you do have mealy bugs. Can't be sure from the photo, but looks like it to me. Got to get rid of them. they do stress the plant.