It seems at the moment, groov can only resize down to a certain level. So, to get the image even smaller, use a bigger image with a transparent background that is much larger. As you resize it, it will get down to a much lower scale and still look alright. In one of the examples I posted, the image overall is 229x229 pixels, but the centered circle is only 91x91.
Now aligning it might be a tougher issue. If you use the LED Gadget you can shrink that down to 2.. even 1 units (although at 1 you could not have "ALM" across it), with a 2 unit LED you could Put "ALM" in Text in front of it.
Hope that helps. Please see attached .pngs.