The Reds have lost six of their last seven games in the English top flight, and a 2-0 defeat to Newcastle on Sunday means that the Merseyside club are 16 points behind the top four.
Despite the grim circumstances, the Scottish coach wants his side to pull together to get back to winning ways.
“I just think we have got to stick together,” Dalglish told Sky Sports.
“They (the players) will stick together because they want to get it right, and the best way to do it is to stick together and believe in what they are doing.
“It’s not as if they don’t work hard, it’s not as if they don’t have the determination and effort to put it right.
“It’s up to us to harness the frustration and disappointment properly, work on it and take it as a positive because if they start to enjoy losing games, we’d have a problem,” he concluded.
Liverpool take on Aston Villa at Anfield on Saturday.
By Gareth McKnight