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I’ve never heard of the Dragon Blood Trees before, but they are indeed real.  Native to a small group of islands in the Indian Ocean called Socotra, these trees have a red sap which exudes from the bark after wounding.

They aren’t just odd looking tress that “bleed” red either, the medicinal and coloring properties of the resin was recorded by the ancient civilizations of Greece and Rome and continues to be used in medicine, dyes, varnish and incense to this day.

A group of Dragon Blood Trees.

The famous red sap that could easily be mistaken for blood.
The famous red sap that could easily be mistaken for blood.