The Gunners currently trail leaders Leicester City by eight points.
The Gunners are currently eight points behind leaders Leicester City in the Premier League, with just eight games remaining of the season.
That has come about after a poor run of form in recent months has seen them fall away, having once been clear at the top of the table themselves.
Their confidence also took another hit on Sunday as they were beaten 2-1 by Watford at the Emirates to end their hopes of a third successive FA Cup triumph.
And Carragher says it will be difficult for them to win the title despite Wenger’s assertions over the spirit in his squad.
"I think it will be difficult for them now," he told Sky Sports.
"Psychologically these defeats and going out of the Cup and Champions League - they're out of that, forget the second leg - and then to lift themselves with the form they're in.”
"[Wenger] keeps talking about the spirit in the squad, but it's more in hope and belief that it will come to the fore."
"The next home game is Watford and they've got two difficult away games in Everton and West Ham."
It would certainly take an unbelievable run of form between now and the end of the season for Arsenal to end up as champions.
Leicester City are yet to fall away or disappoint, as many have predicted they would across the season, and now seem determined to make the title theirs.
Indeed, the Gunners should be nervously looking over their shoulders, with the West Ham in particular a big threat to their top four hopes at present.