Karl Henry has admitted it will take a monumental effort to avoid relegation but insists Wolves will keep fighting until the end of the season.
Wolves have been struggling towards the bottom of the table since the start of the campaign and have recently been left behind as other teams have picked up important wins.
They are currently six points adrift of the three teams immediately above them and Henry is realistic about the chances of survival.
However, the midfielder has challenged his team-mates to show their fighting spirit for the remaining seven games and try to pull off a great escape.
"It's not looking good for us and it's a big ask now. We can't go any lower at the moment," he said in the Daily Mirror.
"All we can do is dust ourselves down and go off and try to get some results.
"We can still do it but our backs are against the walls now and we're as deep in trouble in this league as we've been over the last three seasons.
"We've got nothing to lose - we've got to go out, give it everything and try to enjoy the last seven games and at least put a few smiles on faces."
Wolves' latest defeat came on Saturday when they went down 3-2 at home to Bolton, and Henry admits their defensive record has not been good enough.
He said: "If we defend like that we are going to concede goals and are not going to stay in the league.
"It's just a shame that at the moment it looks like we're going to have to score three or four goals to win a game.
"We're just conceding too many goals. You can have 89 minutes of playing well in this league but you get punished for your mistakes.
"You make mistakes and you get punished and lose games."