Mick McCarthy's team currently find themselves second from bottom of the table after picking up just nine points from their first 10 games.
Many pundits have tipped Wolves to be in a relegation dogfight this season, but Craddock insists no one is panicking at Molineux.
"Of course we are confident we can stay up and you have to be confident," Craddock told skysports.com at an event promoting EA SPORTS FIFA 11 Ultimate Team.
"It is still early days in the season and no one is panicking at the minute.
"The position we are in is not one we want to be in, but we just have to do everything we can to get out of it.
"We are confident with the ability we have in our squad and if we play like we can we are sure that we will stay up."
Wolves travel to Manchester United this weekend before taking on Arsenal next Wednesday and Craddock believes they can take something from the games against two of the so-called 'big four' after shocking big-spending Manchester City last weekend.
"It was really pleasing to beat Manchester City and it was deserved as well," added Craddock.
"It was a big game and we played very well and got our just desserts with the win.
"If we play like we did against Chelsea and Man City then we can have the belief that we can get a result at Old Trafford and against Arsenal.
"We just need to focus on our game and not focus too much on the opposition and have the belief that we can get a result."
The game at Old Trafford will come too soon for Craddock as he is still working his way back to fitness from a hip problem and he admits he is gutted to miss the fixture.
"I am not quite ready to return and it is a shame as it is a big one, the Manchester United game and they are hard to miss," continued Craddock.
"The lads have been doing extremely well recently and my focus is on getting fit and getting back to training.
"The rehab is going OK but I am about a week away from returning."
Jody Craddock is promoting EA SPORTS FIFA 11 Ultimate Team, now free-to-play on Xbox Live. Take on the challenge of building a squad of the world's best football stars by earning, buying, selling and trading players with other Ultimate Team gamers around the world.
Visit www.easportsfootball.com/ultimateteam
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