The problem seems slightly wrong in it assumptions. Please, check this proof.
For $a>0$ and $x_0\ge a$ prove that the sequence defined as $x_{n+1}=(x_n+a/x_n)/2$ decreases and converges to $\sqrt a$.
Then we have that $a/x_0\le1$ and then
$$x_1=\frac{x_0}2+\frac{a}{x_0}\frac12\le\frac{x_0}2+\frac12$$
but then
$$x_1\le\frac{x_0}2+\frac12<x_0\iff x_0>1$$
The exercise seems to be incorrect here, to continue I assume that $x_0>1$. Now I assume the induction hypothesis, i.e. $x_{n+1}<x_n$, then I will check if it is true that $x_{n+2}<x_{n+1}$. We have
$$x_{n+2}=(x_{n+1}+a/x_{n+1})/2=\frac{(x_{n+1})^2+a}{2x_{n+1}}<x_{n+1}$$
then $$(x_{n+1})^2+a<2(x_{n+1})^2\iff\sqrt a<x_{n+1}$$
but the induction hypothesis $x_{n+1}<x_n$ implies too that $\sqrt a<x_n$, then
$$\sqrt a<x_{n+1}\implies 2\sqrt a<\frac{(x_n)^2+a}{x_n}\iff 0<x_n^2-2\sqrt ax_n+a$$
To solve the inequality of second order first we solve the equation, where we get that the unique solution is $x=\sqrt a$. Then I substitute $x_n=\epsilon\sqrt a$ with $\epsilon>0$ to study the behavior of the inequality
$$0<x_n^2-2\sqrt ax_n+a\iff 0<\epsilon^2-2\epsilon+\epsilon\iff 0<(\epsilon-1)^2$$
Then for $x_0>1$ the sequence decreases.
Because the above we can see that $\sqrt a$ is a lower bound of the sequence, then (and because is decreasing) is a convergent sequence. Because the sequence converges then
$$\lim x_{n+1}=\lim \frac{(x_n)^2+a}{2x_n}\implies x=\frac{x^2+a}{2x}\iff x=\sqrt a$$
Trying to see what happen if $0<x_0\le 1$ I observe that is not monotone. What I know is that if $x_n<\sqrt a$ then $x_{n+1}\ge\sqrt a$.
The sequence seems oscillate around $\sqrt a$. I know that converges to $\sqrt a$ because the above sequence is a way to compute square roots, but I dont know how show it with these tools.