Following a second successive defeat to Sheffield United at Bramall Lane on Tuesday night, the Reds have claimed only one win in the last eight games.
But Davies` side remain four points behind second-placed Swansea as they prepare to host Doncaster at the weekend.
"Why should we panic? There are plenty of games left. I have been through this many times. You will have good runs and bad runs. You have highs and lows," said the Scot.
"When adversity comes along, you have to stand side by side and remain focused.
"We will be there or thereabouts at the end of the season, I know that. We have an honest bunch. We have a good group of players and we will work hard over the next two matches."