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So cute! I love the dragon's design and its silly expressions! And man, super cool idea for a control scheme, ahahaha!

There's a moment in the third level where a long fireball covers a couple of gems. Is it not possible to grab them without getting hit?

Aw! Thanks for a nice review! :D 
As for a part of the game you're mentioning, you can try letting the long fireball pass beneath  you and then there's a short timeframe when you can quickly grab it :)