Once your tank has cycled all levels should be 0. Take a water sample to LFS. If your fish are new and seem to be doing fine, then your tank is cycled. I read about people adding damsels to start the cycle and they would seem stressed and twitch and bug out from levels changing. If this isn't happening you are fine.
Damsel is probably dominant and just marking his turf. Also, if you plan on getting rid of them for bigger and better fish, you might want to plan a strategy for catching them. I had to remove most of the LR temporarily to corner them and it was frustrating. They will avoid you, hide in crevises, even change color. But it is worth it to have non-aggressive species.