Rangers dropped valuable points at home on Saturday when they only managed to rescue a point at the end against Livingston in the Scottish Premiership.
It seems highly unlikely that they will be involved in Europe in the latter half of the season and they are now four points behind Celtic in the title race.
Ferguson admitted that Rangers have not been playing well for a time and the performances in the two games going into the Livingston game were not great as well despite the wins.
He stressed that poor performances and results have severely damaged the confidence of the players and there is no conviction in the way they have been playing at this stage of the season.
The Rangers legend said on the Go Radio Football Show: “Last weekend at Motherwell, it wasn’t as great as I mentioned before, but at least they got the three points.
“The League Cup game against Dundee was turgid. What I expected to see after getting a goal up in nine minutes was to go and hammer three or four or five past them but it never happened.
“The game on Saturday was a tough watch.
“I have got to be honest, it’s a severe lack of confidence.
“They were really pedestrian.
“They need somebody with broad shoulders to take the game by the scruff of the neck and I am not seeing that at this moment in time.
“As if the results have damaged the confidence of the players and it probably has but then you need to puff your chest out and show a bit.
“And unfortunately, I am not seeing that happening.”
Rangers have a daunting trip to Napoli in the Champions League on Wednesday night before hosting Aberdeen at home next weekend in the Scottish Premiership.
