By ESPNSTAR.com staff
The Reds have struggled in the early part of the season but they looked to have finally found their form as they took apart Wigan at Anfield; a brace from Luis Suarez and a goal from Jose Enrique enough for the Reds to pick up only their fourth Premier League win at home in 2012.
Liverpool are now 11th in the table but are only eight points separate them from West Brom, who currently occupy fourth in the table.
A top four finish guarantees participation in Champions League, and despite the Reds' slow start to the campaign, Carragher insists that his side are still in the running to qualify for Europe's top club competition.
"We look as if we have not made a good start," the 34-year-old told BBC Radio 5 live's Sportsweek.
"But with winning on Saturday, we are not too far behind the top four. It is still up for grabs."
Carragher revealed that his confidence was fuelled by the lack of consistency shown by the rest of the challengers, with the likes of Newcastle, Everton and Tottenham Hotspur all suffering losses over the weekend.
"Beside the top two, and even Manchester United lost on Saturday, a lot of teams are dropping points all over the place," Carragher added
"From our own point of view, we now want to kick on and make a challenge for that top four place because it seems that everyone is throwing it away."
The former England international also spoke of his admiration for manager Brendan Rodgers and credited the Northern Irishman for showing faith in the club's youths which has resulted in the revelations of several bright talents, including the likes of Raheem Sterling and Suso.
"The owners have come in and looked at it and thought they want to bring in a new manager who will promote players from the academy, which he has done," Carragher revealed.
"I think it does take time to settle in. It was difficult to replace players like Maxi Rodriguez and Dirk Kuyt due to the financial situation in terms of us spending a lot of money in the last few years.
"[Rodgers] has been very brave putting young players in and giving them a chance.
Hopefully, we'll see the benefit of that in the future."
Liverpool will take on Swansea, currently 10th in the table, in their next league fixture.