It seems really undershaded, and that pallet seems very soggy. The sprite is jagged, you need to have way more contrast, and maybe one more shade. Add the AA were it needs to be. And if you add more contrast on everything it will make it easier to see were the light is coming from. Giving you an improved sprite, the same with Adding AA will make it less jagged. One more shade would make everything look rounder, especially the belly.
Also it's not good to trace sprites. You should make them totally custom.
Also it's not good to trace sprites. You should make them totally custom.