First, I suggest finding the limit via this method:
Take $\lim\limits_{n\rightarrow \infty} x_{n+1} =\lim\limits_{n\rightarrow \infty}\frac{x_n}{2}+\lim\limits_{n\rightarrow \infty}\frac{5}{x_n}$. Let $\lim\limits_{n\rightarrow \infty} x_n = x$. Also, observe that $\lim\limits_{n\rightarrow \infty} x_{n+1} = \lim\limits_{n\rightarrow \infty} x_n = x$. Then we have
\begin{gather*}
x=x/2 + 5/x\\
x^2 = \frac{x^2}{2} +5\\
2x^2=x^2+10\\
x^2=10\\
x=\pm\sqrt{10}
\end{gather*}
But clearly the sequence is always positive, so we may discard the negative value.
Now that we have a suggested limit, let's attempt to show that the sequence is Cauchy.
Proof. We wish to show $x_n<x_{n-1}$ for $n>3$.
\begin{gather*}
x_n<x_{n-1}\\
x_n-x_{n-1}<0\\
\frac{x_{n-1}^2+10}{2x_{n-1}}-\frac{2x_{n-1}^2}{2x_{n-1}}<0\\
\frac{-x_{n-1}^2+10}{2x_{n-1}}<0\\
-x_{n-1}^2+10<0\\
x_{n-1}^2>10\\
|x_{n-1}|>\sqrt{10}
\end{gather*}
So, $x_n<x_{n-1}$ if and only if $|x_{n-1}|>\sqrt{10}$.
It suffices to show $\sqrt{10}$ is a lower bound for the sequence for $n\geq 2$. We do so through manipulation of the definition of this sequence. Observe
\begin{gather*}
x_{n}-\sqrt{10}=\frac{10-2x_n\sqrt{10}+x^2_n}{2x_n}\\
x_n-\sqrt{10}= \frac{(x_n-\sqrt{10})^2}{2x_n}\\
\end{gather*}
Thus, $x_n-\sqrt{10}>0$ if and only if $x_n$ is positive.
We prove $x_n$ is positive by induction on $n$ (note: this is a little overkill but, you get the point). Observe $x_1=2>0$. Now assume this is true for $n=k$. We will show $x_{k+1}>0$ follows from this assumption. By the definition of the sequence we have $x_{k+1}=\frac{x_k}{2}+\frac{5}{x_k}$. Since $x_k,\frac{1}{2}\in \mathbb{R}^+$ and multiplication in $\mathbb{R}^+$ is closed, $\frac{x_k}{2}>0$. Furthermore, $\frac{1}{x_k}\in \mathbb{R}^+$ since it is the inverse of $x_k$, $5\in \mathbb{R}^+$ and by the same argument $\frac{5}{x_k}>0$. Thus, $x_{k+1}=\frac{x_k}{2}+\frac{5}{x_k}>0$. Therefore, by the first principle of mathematical induction,$\forall n\in \mathbb{N}$, $x_n>0$.
This not only shows, $\forall n\geq 3$, $x_n<x_{n-1}$ but it also shows $\sqrt{10}$ is a lower bound for the sequence $\forall n\geq 3$. So, by the monotone convergence theorem $(x_n)_{n=3}^\infty$ is a convergent sequence and therefore $(x_n)^\infty_{n=1}$ is a convergent sequence. Then the work in the beginning has value, and $\lim\limits_{n\rightarrow\infty}x_n=\sqrt{10}$.