yeah definitely too many colors, try to go with a ramp of 4-5 colors, that usually is enough to work with and looks great.
Also for this tiny resolution the less colors you use the cleaner it will look, because what makes it noisy is that you don't have any flat planes of colors in it.
A clean outline style also can help to make character parts pop.
You can get cleaner images by starting with a shilouette and adding light, then midtones and then highlights.
Tiny details like eyes and teeth can get added anytime in the process, just make sure they contrast nicely.