What mood is created by these lines from “Old Ironsides” by Oliver Wendell Holmes?

On the one hand, the verb "danced" is very lively and upbeat, showing how important the ship (the USS Constitution) has been as a force in the history of United States Navy and defending our country. On the other hand, the lines before it , "Ay tear her tattered ensign down!" shows that this ship has seen better days and there may not be many eyes dancing to see the ship's flag flying again.