Can i replay Dancing Grenade when played with Fizz, Trickster after it got recycled?

No — once Fizz's recycle replaces the trip to the trash, Dancing Grenade is on the bottom of your deck, and its "play this spell again for [A]" permission only works from the trash.

Fizz's "Then recycle it" is a replacement effect that applies whenever the spell would leave the chain, for any reason — it isn't optional and it doesn't leave you a trashed copy (FAQ #10401). So when Dancing Grenade resolves, the card goes straight to the bottom of the deck instead of the trash, and the recast instruction (which the damaged unit's controller gains) has no card to find.

Worth flagging: the controller who gets the recast option is the controller of the unit that took the 2 damage, not necessarily you — but it doesn't matter here, because the card never lands in anyone's trash. Played normally (not via Fizz), the loop works as usual.