Yet to taste defeat across all competitions so far this season, the Light Blues sit on top of the Scottish Premiership table and are well-placed to progress in the Europa League.
Former Rangers star Halliday feels the Gers, who are currently nine points ahead of defending champions Celtic, will go on to win the league this term.
However, the Scot is of the view that the Ibrox outfit will not be able to retain their current level throughout the season and expects them to have a blip in form.
Halliday thinks Rangers will have a poor run at some point and stressed the importance of the Gers making sure it does not last for too long, as it did last season.
“Listen, I said it at the start of the season, I think Rangers will win the league“, Halliday said on Open Goal.
“I don’t think they will be as good as they are now for the full season though.
“There is going to be a period in the season where Rangers will have this blip.
“The issue is when you have these blips they kind of last for five, six games like it did last year.
“So Celtic, for me, I felt it as if they have turned their corner against Aberdeen because it just felt different, the way they played, it was more convincing.
“Obviously, Sparta Prague happened and then this Motherwell game.
“If they win against Hibs next week and they can build on that then it is going to be close again.“
With a nine-point lead over Celtic, Rangers will be looking to keep up the pressure on their rivals by continuing to pick up the points.