I took this to refer to the Coil storyline. Go to Boulder Downs in Coerthas, that's your crimson o'er fields of white. An unsheathed rime kissed blade would be the fragment of Dalamud, also at Boulder Downs; unsheathed from Dalamud, rime kissed in Coerthas. While that all works, I don't think it's the true meaning of the lines.Splendor dances with shades
Unsheathed, a rime kissed blade
Spills crimson o'er fields of white.
Splendor I take to mean Ishgard, shades the Allagan; Ishgard has an interest in that lump of Allagan technology lying right on their doorstep. Technology that trapped the Dragon God? Yeah, that wont help with their war with the Dragons...
Unsheathed, a rime kissed blade, the rime kissed part remains the same as I previously stated, but unsheathed instead refers to it being excavated rather than falling from Dalamud.
Spills crimson o'er fields of white refers to the fact that we'll be fighting there. Coil Turn 6+ will be located at the fragment of Dalamud at Boulder Downs, we'll be fighting there and spilling blood in Coerthas because of this.
Minor Coil Spoilers;
In the cutscene after beating Turn 5s boss Alisaie comments that the contraption around its neck was controlling it; that the Allagans could control Dragons, more so that the people of Ishgard would kill for such technology. Hint Hint!


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