The Gunners dropped more crucial points in a 1-1 draw against Chelsea despite having the lead at Stamford Bridge. The result means that they are now nine points behind Liverpool with just 11 games played.
No side has ever come back from such a margin to win the title in Premier League history. Merino, though, was insistent that his Arsenal teammates cannot afford to get too despondent just yet.
"You have to look at it all, not only the result, but at the same time look at where the team is coming from, how the team is playing, and I think today is a day to be very proud of the guys," he said following Sunday's London derby. "I think we did an amazing job after a difficult couple of weeks with a lot of injuries, with not the best results.
"I think the mentality and the character that these guys are showing is just unbelievable. You can see it, just [after] conceding a goal away from home, against a team who is normally dominant, and you are the ones who are dictating the tempo and attacking and creating the chances. This is a big sign of what this team is about. I am a positive person and I hope for the future the results are coming and this team will grow.
"We don’t have to look at the negatives. We have to look at the positives. We have to look at ourselves, at how we want to perform, and not start thinking about what is going to happen if we lose. That’s adding extra pressure.
"We know we have to win every game. We know that. We want that and we have to work for that - and in order to achieve that we have to focus on the present, on ourselves, on improving and getting better. That’s what we are going to do."
Arsenal's chance of launching an unlikely comeback in the title race have been bolstered by the return of Martin Odegaard. The Norwegian has been out for nearly two months with an ankle injury, but came back to produce a man of the match performance against Chelsea.
He is one of several players to have been absent for Arsenal this season as the Gunners have struggled with injury. Having missed two months with a shoulder problem himself, Merino is now hopeful his side can have a bit more luck in this next part of the season.
"It is always tough when you are missing players like Martin Odegaard," he said. "He is the captain, he is one of the main players. It’s obvious that when we have him, we are a better team. I think he will need some time to get back to his best level, even though he is one of the best players in the Premier League.
"But yeah, I think this team needs every single player, not only Martin, but everyone being healthy and back to 100%, because this is a squad and we need everybody."
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