Brendan Rodgers' side went down to a controversial 2-1 loss at the Emirates Stadium, leaving the Reds to concentrate on chasing a top-four spot in the Premier League.
And 23-year-old midfielder Allen, who put in a man-of-the-match performance in his first start since December, feels the Merseysiders are more than capable of achieving their goal.
"That's the positive we take from the tie - the performance," Allen told the Liverpool Echo.
"We were bitterly disappointed to be knocked out of the cup and I'm sure the fans travelled home very disappointed.
"But our performance level against a good Arsenal team holds us in good stead for the challenges ahead.
"Our league form was very good before the cup game and we've got to get back to that.
"We've got 12 big leagues games to go and there is everything still to play for this season."