Yes this is possible.
If you go to “Server Manager” -> “Administrator Settings”.
Then go to the “Security Settings” tab and enable “Automatic Lost Password Recovery”.
This allows users to click on “Lost password” on the login page.
After that they need to enter there username.
Then an email is send to the email address that is linked to the given user with a link to reset there password. (So if the user does not have his personal email set in the DirectAdmin panel then this will not work.)