This crazy amount of folds is going to be very difficult to keep consistent when animating. I recommend simplifying them to just the important ones.
You definitely don't need more colours/"blending shades", if anything, you'd probably have an easier time animating with less of them, and most of them are already hard to see.
The character looks very flat. All the folds and clothing edges are just straight, the clothing is all shaded separately of each other, the face is shaded/highlighted only at the edges as if it were a flat embossed sticker, giving the character the look of cardboard pieces rather than a 3D person. The cast shadows on their arm mitigate this a little bit, but I think you could push the volumes more even in this static pose. You'll almost certainly need to in most animations.
Lastly, you could probably push your hue-shifting more, so that the colours feel more vibrant.
An edit that incorporates most of this feedback, just to give you an idea:
Left one is yours. Middle one is edits just the shapes, shading, and gets rid of some of the highlights, which I feel were unnecessary/noisy. The right one has some minor colour tweaks to improve the contrast.
Details on the shading changes:
I moved the shading on the character's right (viewer's left) arm to the bottom of it, since the light seems to be coming from above-left. It makes no sense to have shadows on top. I used the shadows on the shirt as well as some tweaks to its silhouette to suggest folds. Highlights aren't needed for this at all, they just make the shirt look distractingly shiny.
I simplified the trousers similarly, and kept just some large folds, especially towards the bottom where they widen, which is where they're loosest and thus most fold-prone. I probably shouldn't have even added any folds to the thighs, they're unnecessary. Also notice that I don't have a line of shadow at the bottoms of the trousers. They're made of a relatively thin material, so they essentially just cut off instead of visibly curving away/into shadow.
Photo example.
I have the character more shadow on their cheek just to give the head more volume. However, I reduced the shadow cast by the hair, both to help it read better, and because the hair doesn't look like it's so voluminous as to cast such a large shadow. The resulting shadow is more like AA than a shadow, and I think that works. Often, fringe casts barely any shadow on the face anyway, because it's not solid, and a lot of light passes through it.
I made the head cast a shadow on the scarf. Where the scarf billows away from the body, I put it in shadow, since the downward-facing surface should receive no light. Reducing the scarf to just its lightest and darkest colours probably makes it to contrasty. Rather than adding a third colour, I think the best solution would be to darken the light colour, so that the whole thing stands out a little less. Even with three colours in your original, it stood out more than it probably should.
I have the characters a dark line along the bottoms of their shoes. This isn't intended as shadow, but rather as the soles. The actual shadows are very small and on the right. The big rounded shadows you had made the feet look too rounded and not like they're planted on the floor.
