I had fun trying this out! The thumbnail drew me in with the typeface, palette, and simple but effective pixel art. The player motion was smooth, responsive, and bug-free, and the gameplay felt intuitive. I also liked the droplet's animations when it moves vertically. I played it through from complete fall to complete ascent. Nice!
Some feedback that I hope is helpful: You might consider a little animation of the droplet shedding little bits of water when it gets hit, to visualize your concept. It would reinforce the shrinking effect you have already, and you could use it also on those final three hits when the droplet no longer shrinks. Having the shrinking on those final three hits would be nice, too.