Overall it looks really good imho.
What I'd change: make the folds a bit darker as it goes up, so a fold below the hood is a bit darker than the same fold at the bottom.
yes, you can get the transition much smoother.
But first you may have a surface(preparation) or primer problem there, it looks like as if the base itself wasn't smooth enough.
to get the blend smoother, all I could suggest is using a LOT of thin glazes. Both ways, so with the dark blue towards the recesses, but also with the lightest color toward the highest points.
By thin I don't mean too watery, just don't let it pool, but as a rule of thumb a 1:4 paint:water to start (depending on color, you might need to dilute it even more, for more control some of the water can be replaced with matt/glaze medium). It's about right if you see it dry as you move the brush away.
(hope someone with better english + better teaching/explanation skills will respond here too

)
edit:
but if you don't want to go to a painting competition(GD for example) with it, then you propbably don't need to work more on it. As it is it looks good, and on the table great/exceptional. Easily marking him as a center-character of a HE army.