In a topsy-turvy clash, QPR were denied a point by Christian Benteke's late winner as Aston Villa moved clear of the relegation zone.
Redknapp admitted that the 3-2 defeat is a blow to their survival hopes but is adamant that his side can still beat the drop.
He told BBC Sport: "We could have been three or four up and their keeper pulled off several world class goals. They broke and scored and they came in at 1-1 and they couldn't believe their luck.
"We got back to 2-2 and gave a soppy third goal away. I thought we were fantastic in the first half. I thought Clint Hill had scored in the top corner at the end, and sometimes you get the breaks.
"It is hard with the points situation but we are playing very well. That is all we can do with eight games to go."
Defeat means the Hoops stay bottom of the Premier League and seven points away from safety.