To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
Jurgen Klopp's men made a flying start to the season to raise hopes of a Premier League title challenge, but have been in woeful form since the turn of the year.
They have won only one of their last seven league games and sit fifth after Monday night's 3-1 defeat to Leicester, 14 points adrift of leaders Chelsea.
According to Murphy, Liverpool overachieved at the beginning of the campaign due to Klopp, with the former Reds star insisting the current squad is simply not good enough to challenge for major honours.