Nadal was crushed 6-3, 6-2 by Andy Murray in the final of the Mutua Madrid Open on Sunday, a tournament which he has won four times, including in 2014.
While Nadal admitted that his failure to retain his Madrid title was a bitter pill to swallow, the Spaniard revealed that he is starting to gain some much-needed confidence ahead of the French Open, which kicks off later this month.
Nadal hopes that his confidence levels will continue to grow in Rome, and added that he is determined to win his eighth Rome Masters crown after falling short in the final against Novak Djokovic last year.
"The most important thing is the feelings I have and this week I had much better positive feelings than a few weeks ago so that's very important for me," Nadal told reporters after his match against Murray. "There is a chance for me now to have another good week in Rome like I had here.
"Even playing very badly today my feelings on court were not that bad. I just have to accept that it was not my day and forget it because it's not time to think about negative things as I have another match in two days."
Nadal conceded that he he had felt a lot worse after he was knocked out of the Barcelona Open in the third round following a 6-4, 7-6 (8-6) loss to Fabio Fognini than he did after his defeat to Murray.
"One week ago the feeling was much worse," he said. "It's the time to be positive and fight for what's going on and what's going on is Rome next week."