Jamie Carragher says Liverpool have the sixth-best squad in the Premier League and rates them as outsiders to seal Champions League qualification.
Although Carragher feels the presence of manager Jurgen Klopp gives them a chance, he thinks they are up against it to make the top four.
Following Saturday's 2-0 defeat at Hull City, the Reds have lost four of their last five matches in all competitions and will fall down to fifth on Sunday if Manchester City avoid defeat against Swansea City.
Carragher, who won nine major trophies including the Champions League during his Liverpool playing career, said to Sky Sports: "I imagine after the weekend they will be outside the top four and they will be outsiders now.
"Liverpool have got the sixth-best squad in the league for me, but I think the quality of the manager puts them where they are.
"Off the back of the cup exits, the only thing left for Liverpool is to qualify for the Champions League. If they do, I still think it would make a successful season.
"People will keep saying they have played a lot of the top teams but in their next home games they have got Tottenham and Arsenal.
"You would expect them to do well in those games, they always do, but the majority of matches they have struggled in have come against teams in the bottom half of the table. That is where they have major problems."
Carragher feels Klopp needs to be more attacking, make his substitutions quicker and ditch Emre Can from the starting line-up to improve Liverpool's fortunes.
He added: "I would take Emre Can out of the midfield. I don't think it works as a two alongside Jordan Henderson.
"I don't understand why Georginio Wijnaldum was out of the side. I think he brings more energy and a bigger goal threat.
"Maybe change the system of three central midfielders and three attacking players? You could go for a more conventional two central midfielders, a number 10 and a front three. You would have more attacking players on the pitch against sides like Hull.
"The changes from the bench have got to come a lot quicker too. It takes too long to make a change and they will very rarely make a substitution at half-time."