Dripping Blood Text
Make a new doc (500 x 200), select the gradient tool and drag a gradient from the bottom up, then select the type tool and type in the wording you want in a large white font (50).
Now we're going to add some dimension to the font. Double click the layer to enter the layer styles menu. Select Bevel and Emboss and fill in the settings below:

Select gradient overlay, click the gradient, and set the colors to something more suited to bone, which is what we're going to replicate.

In the original type layer, take the magic wand tool, select the background, then go to select > inverse, then select > modify > expand and type in 4.
Make a new layer, which you can call blood, take the paintbrush tool set to size 30, 100% opacity, 100% hardness, and select a bright red.
Paint a wobbly, inconsistent line of red over the top portion of your text.

Hit select > deselect, take the smudge tool and set it to size 10, 80% hardness and pull the edges of the blood down so it hangs more realistically (change brush size where needed). You can also take the eraser, set to 100% hardness and opacity, and create more natural curves.
Double click your blood layer to enter the layer style and click Bevel and Emboss.
Enter in the settings below or try your own for a glossy 3D blood.

Select the paintbrush tool again and resize it to 2-5 px. Now you can paint drops of blood anywhere that they would seem appropriate.

Hide the background, then in the type layer CTRL + A to select all, SHIFT + CTRL + C to copy merged, CTRL + V to paste. This has allowed us to duplicate the font with the layer styles and to be able to use a layer mask to fade it out.
Hold shift and drag the new layer to the bottom of the original layer.

Go to layer > layer mask > reveal all. Select the gradient tool and make sure to choose a black to white gradient. Play around with your gradient going from top to bottom of the picture until you're satisfied.
And you're done!

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