Google Dance is generally a temporary thing. If you continue to add more content and build more backlinks to your site instead of just giving up, then almost like magic, it will an even higher spot.
During a Google update, the SERPs returned by Googles various datacenters are different, some showing the new SERPS and some showing the old ones. The SERP placement of a site will change from minute to minute and this is referred to as Google dance. It is often used to describe the index update of the Google search engine.
Google dance is term used to denote the changes in Search Result position of our website in Google Search Results. It happen if you own a new domain with less number of quality backlinks.
Google dance is the effect of any algorithm changes in Google ranking. There are over 400 changes take place each year in Google, so it happens frequent. Some a temporary and some are permanent. Matt Cutts have also talk about this at http://www.youtube.com/watch?v=WJ6CtBmaIQM Hope this helps.