Six wins from their last half-dozen games will see the Reds crowned as champions, but the former centre-back believes that the team's relative lack of experience in a title run-in could be their undoing.
He told The Telegraph: "At some point, players will become scared because the title will feel so close that a setback here or there will inevitably spark negative thoughts.
"After a 24-year wait to become league champions again, you can smell the excitement, belief and desire that is infusing the whole club. But Liverpool have not yet smelt fear and, having experienced countless title run-ins during my time at the club, the only certainty is that it will come sooner or later and how (manager) Brendan Rodgers's players deal with that will decide the outcome of the title race.
"From this point on, it really does become a test of nerve for everybody involved – players, coaches and supporters."
The Reds travel to West Ham United on Sunday.