That is a new psuedobulb. When they are very small new bulbs and spikes look similiar. Pbulbs will fatten up before they grow upward. Spikes will lengthen much quicker. My echinolabium grows Pbulbs and spikes at the same time so I am used to seeing this. If it were my plant I would repot into a slightly larger pot but you could go on awhile in that one as well.