Can I become a German citizen even though I am not living in Germany
Yes, in principle this is possible. Mastery of the German language and proof of ties to Germany are just as important as the prognosis that the applicant for citizenship will not require state funds for maintenance if he/she moves to Germany. There are a number of other conditions.
You are advised to contact the competent German mission abroad to avoid submitting an application that cannot be accepted but which is nevertheless subject to a fee.
German missions abroad: Countries A to Z