I agree,, likely a pendant from the two loops on the sheath,,either the dagger was attached to one loop by a tiny soldered chain or it snaps into the sheath and is held by the metal around the top of the blade !! Other loop would be for chain to wear it !! These are usually souveniers from trips or as in my case,, a friend brought me a silver pendant with Nefertiti`s bust when he worked in that area (Yemen) !! Silver is cheap over there !! Or was cheap,, this was back in the 80`s !!