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Is it possible to layer a transparent picture over the canvas? Im trying to make some of my art into sprites but im hopeless at pixel art and it would be really helpful.

Not in the current stable version, but it will be possible in the next version, in the form of reference images. Right now, you can make Pixelorama's window transparent (by going to the Window menu -> Window Opacity) and have the picture opened in an image viewer app below Pixelorama's window.