So I’ve met this girl through a mutual friend and we became friends almost instantly. I don’t really recall what happened after thay but after sometime she started talking about her ex and I (who was flirting with someone else) was taking about this other girl. This continues for a month or so but eventually she stopped talking about her ex and I kinda ghosted the girl I was talking to. It was then I realized I had feeling for her and really enjoyed her company. We needed up going to a formal party with out mutual friends and she was with me most of the time. We even danced together hold hands etc. to the point where people thought we were a couple. This was then pointed out by one of my friends who asked me why I didnt introduce my “girlfriend” to Him (this was in font of her since she was hugging me when he said that). She then chuckes and says “No I’m not dating him”. After that she just makes fun of the situation calling me her “pretend boyfriend” every time we danced.

Am I in the friend zone or am I just overthinking it?

I’m actually really bad at reading situations so that’s something I’m working on.