Your shading looks pretty much like a bevel/emboss filter. one edge is highlighted, one edge is darkened. makes it look like a flat piece of cardboard.
Try to imagine how the light would hit the forms. If you have trouble imagining it, use a reference. a picture of a wolf would do.
Speaking of which, basic shape when squinting looks alright. when looking at it normally you can immediately realize major issues with the anatomy. especially if you're interested in drawing chimeras i'd suggest look at the different creatures make-ups, bone constellations, try to figure out what makes them work, and you'll have a jolly good time combining different elements.
Additionally, id suggest to look at this thread.
http://pixelation.org/index.php?topic=19686.0Its a treasure trove for this kind of sprite