Barnes, who starred for the club in rather more successful times, believes that all the Reds lack is confidence.
He said:"I definitely think they can get out of the position they are in. They have been struggling and they didn't get a particularly good result yesterday.
"The desire was still there. They were running around, they were tackling - confidence is the only thing they are lacking.
"They still have the quality there but they need a little bit of confidence. What is needed is for everyone to be pulling in the same direction.
"I still expect Liverpool to finish fourth, which would be a Champions League place. Third would appear to be beyond them though.
"Obviously the longer the season goes on with them not turning it around the more difficult it is going to become.
"But it is important for people to understand that Gerard Houllier is committed to Liverpool because that is the only way Liverpool are going to get out of this sticky run.
"I have faith in the players and I have full faith in the manager. But confidence is a hell of a thing.
"I don't think this will have an adverse affect on Gerard or the players. But I hope it doesn't have an adverse affect on the fans because they are very important in terms of stiking with the players. They will give the players confidence."