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Singing and dancing by Kiddush Levana?
It is customary to dance and rejoice when the new month is sanctified just as one would rejoice by a wedding. The reason for this is because the new moon symbolizes the future redemption, as explained above in connection to David, therefore we dance and are joyous as is the joy of a wedding.
The Rebbe’s Directives:
Being that Kiddush Levana has a connection with the future redemption therefore one needs to have extra alacrity and be more careful regarding Kiddush Levana. Thus one should wear nice clothing, and have it done on the streets with many people, as Birov Am Hadras Melech. As well it is to be said at its prescribed time.
 Rama 426/2
 Lit. Kiddush Hachodesh. Seemingly in the Rama this refers to in the times of the Temple in which the Kiddush Hachodesh was done by the Beis Din and was followed by a great feast and festivities. Nevertheless today too it is customary to dance and rejoice by Kiddush Levana, as is evident from Shaareiy Tziyon 426/12
 Shaareiy Halacha Uminhag 2/179
 As it says in Sanhedrin “Anyone that sanctifies the moon at its time is considered as if he has greeted the face of the Shechina”, and as the Mharsha there explains, and as is ruled in the Rama as the reason behind the custom to mention “David King of Israel is alive and established“.