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I've always thought Danielle was a pretty name. I think Dani is a cute nickname, or Nell, Nellie, Elle, or Ellie.

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I haven't heard it on any young girls, but I know several my age: my cousin's name is Danielle (she goes by Dani), in high school I was friends with one who went by Elle, and in college I was friends with two who both just went by Danielle. I also know a Dannie, but I'm pretty sure that's her name and it's not a nickname.