Looks good, although what were you trying to go for with the red outline? If you were trying to make it look like blood, it didn't turn out so well... Otherwise it looks ok.

The red outline is not supposed to be blood, I just thought it looks good. Should I think about reworking the blade?

It could look good even without the blood I think. You could remove it, or just simply making the blood less "neat"-- kind of like this image.