Monk took over earlier this month after the departure of Michael Laudrup, and got off to a flying start with a 3-0 win over bitter rivals Cardiff City in his first match in charge.
Since then, Swansea have taken one point from trips to Stoke City and Liverpool in the Premier League, while they have also been knocked out of the FA Cup by Everton and drawn 0-0 with Napoli in the UEFA Europa League.
Sunday's 4-3 defeat at Anfield was a blow, but Monk was delighted with the progress shown by his side in such a short space of time.
"We've only been with them for two weeks in terms of what we've been trying to work on," he said.
"If we can go forward even longer than that, I think the level they can get to as a team, the sky's the limit.
"That's what they have to believe in, that's what you have to believe in, that's why you do it."
Swansea are just four points clear of the bottom three, but Monk took great heart from their performance against Liverpool, in which they pushed their opponents all the way.
"I said to the players, 'look what you've done in a period where you've had games against so many good teams, big teams - you've got to keep that energy'.
"They've come here after playing against Napoli and were pushing to the very end to get a result. So it fills me with confidence but it should fill them with confidence."
