The most common and most likely answer to this crossword clue is the 5 letter word JIVED
I've seen this crossword clue in Financial Times
J
I
V
E
D
Buddy explains!

The straight part
We know that "danced" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case danced = jived.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does JIVED mean?
JIVED verb- To reproach with contemptuous words; to deride, to mock, to taunt.
- To say in a mocking or taunting manner.
- To make a mocking remark or remarks; to jeer.
- To accord or agree.
- Alternative spelling of gybe
- To deceive; to be deceptive.
- To dance.