What to do with a tiny oncidium?

[LuckIsAllSmiles]

I have a very small oncidium (is it a dwarf?) Twinkle "snow" that I've had for several years now. It's never been repotted, so it's in the original bark medium that it came in, as well as the original tiny pot. I live in a very dry climate (Montana, US) and as this orchid has grown, it's become more and more difficult to keep it watered appropriately. I'd like to try S/H to deal with our indoor humidity problem.
Do I just repot?
Do I repot and divide the plant? It currently has around 12 pseudo bulbs of various sizes in the 2.5" pot.
What medium is recommended for S/H for an orchid this tiny?
Is S/H even an option for a tiny orchid like this?
It is actively growing and has been since I got it . I've killed my share of phals, but this tiny thing goes on and on, and I'd like to keep it that way!
Any help you guys could give me would be great!