The Valiants fell to a 76th-minute winner from Deane Smalley in going down 2-1 to Oxford United at the Kassam Stadium, suffering back-to-back defeats for the first time this season.
And having lost their last two at home, Adams knows Tuesday's League Two clash with Bradford at Vale Park is now a massive one in terms of their season.
Adams said: "I was pleased with the first half performance because we squeezed up and limited them to very few chances, but in the second half we sat back and invited pressure on ourselves.
"In the first half we gifted them a goal through Darren Purse's mistake, but then got back into the game with a great goal from Doug Loft.
"The in the second half we got done with a goal that was avoidable. All the things that we were doing right to get results we're not doing at the moment.
"In the second half we were off the pace and our distribution to the front men was poor.
"We're left scratching our heads and don't recognise some of our players at the moment. There's no doubt we're lacking confidence.
"I stand by my players and always will but now they've got to look at themselves. We're in the eye of the storm at the moment, but we'll come through it, and we'll be better for it. This is a blip, there's no doubt about it, but we'll get through it."