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It looks like a nice healthy plant that does need a larger pot!
If there are new roots and growths starting it would be a good time to repot. And it is spring in your part of the world, so it should be a growth period for the plant.
A lot depends on your growing conditions and watering habits as to what to pot it in. Oncidiums have finer roots than Phals and Catts so I often use a finer mix. They also don't like to completely dry out. I usually use a fine bark mix, sometimes with a bit of sphag and perlite mixed in. I have re-potted several Oncidiums into a slightly courser Orchiata, something between the fine and medium regular bark, and as long as I keep them well watered, they seem to be doing really well. Maybe they like the slightly larger air pockets at their roots.
If it was in a decent growing medium already, it seems happy, so you might want to replace it with something similar.
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When to repot my Beallara marfitch?
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