The Reds currently sit 11th on the table with 15 points from 12 outings but the veteran defender feels the side is capable of retrieving a Champions League spot after a slow beginning to the campaign.
"Teams are dropping points all over the place," said Carragher in the wake of yesterday's 3-0 win over Wigan Athletic.
"We look at it as if we haven't had a great start to the season but winning yesterday we're not too far of the top four, which is where we want to be.
"From our own point of view we want to push on and make a challenge for the top four.
"It seems like if everyone is throwing it away it is still up for grabs."