Jurgen Klopp’s men have struggled to find consistent form since the turn of the year and are yet to win a Premier League game in 2017.
The Reds slumped to a disappointing 2-0 loss to Hull City on Saturday as they suffered another blow to their top-four hopes this season.
That result left Liverpool in fifth place in the table and 13 points behind leaders Chelsea after 24 games of the season.
Liverpool are also out of all cup competitions and will now solely focus on breaking back into the top four this term.
And former Manchester United defender Neville feels that the Reds will be able to capitalise on a quieter fixture list in the coming weeks and months.
Speaking to Sky Sports on Sunday, Neville said: “Liverpool had a period where they could pick the same side, they had that week to prepare.
“The minute that that squad hit three games a week, with the way that they play, was always going to hurt them. You cannot play that way three times a week.
“When you are leaving six players back at base, it causes disruption, it disrupts the squad and the squad isn’t good enough.
“Liverpool will get stronger as the season goes on. Now they are out of the cups, they are back to that period where they will have a week between games, and that is when they get can get their energy up and become devastating.
“Next season, when they potentially get back into Europe, they will have to strengthen the squad.”
Liverpool return to Premier League action with a crunch clash against Tottenham at Anfield this weekend.
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