Sprite/Art for My OUYA Game

[Vipershark]

I'm personally not a fan of dithering, but that certainly looks better than the previous version.
What you need most now is contrast, though. You've got five shades for the skin color alone (with one of those shades only being used for a single pixel, as far as I can tell) and four shades for the hair, when you could make due with probably two for the hair and three for the skin.
Adding more contrast will allow you to get rid of redundant shades and keep your color amount down.