Your swords form is very good. However, you are using too many colors that are too similar to each other. This is a common mistake for people new to pixel art. The blue in the owl can be condensed to only a few colors as well as the browns in the handle and reds in the ribbon. Also, the rust was too harsh against the blue of the sword, so anti-aliasing near the rust with the same middle blue color of the sword will make it more believable that rust was growing on it. Lastly, the swirls on the rocks were too lightly colored.
Overall a very good start and a solid base that just needs some minor tweaking.
Below is an example of edits.
