Yes but nonetheless your technique is off; I suggest the spriteart tutorial as well as my own. Good luck fixing this piece up a bit more; it has some great potential.
Your aa is broken, I'm afraid. What you've done is just encircle things with intermediate colors. You need to place those colors where there would be, in a world where such things existed, parts of both extreme colors.
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well yes, the anti-aliasing was a bit "off", but I think it gives it a unique affect.