Thank you for constructive critique. There were difficulties with outlines and colors. I think it looks better now.  

A little bit of constructive analysis:

1. Idea. Ninjas breath under water. Ok, fair enough. But how?

2. Character. BIG eyes, FLAT squished body and "underwater bat " STICKING from head.

3. Objects. Stone wall in the back look like sea grass, stones in the left bottom corner extend beyond the edge of the roundy platfom, one pillar is NOT finished, propeller will NOT spin, reflexes and shadows are NOT permanent colors, 

...

Items and health bar, pipes and jellyfishes look normal. Need more practice!!

This game is a masterpiece! Beautiful and simple.

As a gamer I can tell about this experiance. First impression: "Awesome! " Music, visualisation and story are nearly perfect.

Characters and scene of the story interlace with plot of Red Riding Hood.

The harmony of colors and smooth animation are very pleasing to the eye.

The melody and sound effects sustenance atmosphere of fairytale and add rhytmic flow.

Can you do even better?

Yeah, I'd like to make paper ball with this pattern and put little light bulb in!

Nice colors! 

Good stuff, mate! I liked vertical health bar, green plant/creature and the chest the most. The ghost and armor reminds me Al from Fullmetal Alchemist. 

Sky gradient looks a bit angular at the top. Shading of the hill is nice balanced. The illusion that eyes look on the clouds make them too small.

Thank you, I think everyone can do this with enough patience and skill.

Indeed! 

I think you can make a slice-half-part "door" that opens view of tunnels as alternative of transparent "wall".

I find GIMP difficult for pixel animation in general and most of the time goes on how it will be on the paper. I can show you this on these examples: imagine this process as a design of the clockwork with many individual pieces; Sky island is similar to the cloud castle that floats smoothly or a giant fantasy creature that surrounded by a flock of birds. Take ideas from nature!

I like how you make details: tail, legs, tongue, ears, stick and bone. Looks so airily and  vivid!

Thanks! You can also see the whole animation there: http://grapplejuice4percent.deviantart.com/art/Planetarium-359349944 

At first I made one side with texture and tried to do steb by step animation in MS Paint. After that I realised how to use mapping tool in GIMP, drew the whole texture as a 2d world map (you can see this tutorial — http://www.home.unix-ag.org/simon/gimp/globes.html) and grouped frames with Easy GIF Animator.

Looks very nice and it's easy to imagine in motion with more details. The animation of this floating island would be great!

Thank you!  

Thanks, I'm glad you liked it! I was inspired by Paul Robertson art and a story about a little forest creature. At first that was just a test of my skills, but now I realize the potential of this particular idea.  My  goal is to find the way to portray what I imagine in my head.  I think I should prepare for the next step of game development, yay c: