Looks great! If you are looking for smoother blending try using the eyedrop tool (whatever that thing is called) and sample the in between shades/colors to make the transition more gradual! On a different note, your shading is well done and well put together. Keep it up!
I'll keep that in mind....I've been practicing creating images with just value...so this picture was started in just greyscale...then colored...but i haven't really found a technique i like for coloring over the greyscale image!
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