Bubba Watson sits on top of the leaderboard following another impressive day for the 2012 champion but Rose, whose round of 70 left him on two-over-par, believes that the American can be caught by the chasing pack.
"Although that is perceived to be a long way behind, I feel that is just about still in it," the US Open champion told Sky Sports News.
"Bubba may have a decent lead but you almost have to take the leader out of it sometimes and look at the pack.
"If a guy stretches out and plays great and wins by five, six, seven there is nothing you can do. You have kind of got to see how the field is playing at large."
Rose's best finish at Augusta National was a tie for fifth in 2007.