Hint:
$x_{n+1}$ is a subsequence of $x_n$, so they have the same limit as $n \rightarrow \infty$, provided the limit exists. You already know the sequence is monotone decreasing, so now you'll want to show that it is also bounded below. Once you have that, then a limit $L \neq \pm \infty$ exists by the monotone convergence theorem. At this point, you can simply take a limit of both sides and apply limit arithmetic:
$$\lim(x_{n+1}) = \lim \left( \frac{x_n}{2} + \frac{1}{x_n} \right) = \frac{\lim(x_n)}{2} + \frac{1}{\lim(x_n)}$$
In other words:
$$L = \frac{L}{2} + \frac{1}{L}$$
And now it's just a matter of solving for $L$.