Nigel Pearson's men have strung together three consecutive victories to sit in the bottom three solely by virtue of goal difference - level on points with Hull City.
Leicester travel to bottom side Burnley on Saturday before facing fellow strugglers Newcastle United, Sunderland and QPR before the end of the campaign.
Walsh - who made almost 400 appearances for the club and won the League Cup - stated these winnable fixtures could save Leicester.
"We started [the season] very well up until [the 5-3 win over] Manchester United and then slid for a long time," he told Perform.
"It's great to see Nigel Pearson is getting some reward now. We've been very unlucky in a lot of games - I can't remember a game where we've been really outclassed.
"I'd say we're better than 10 teams in that league, maybe 12.
"I wouldn't say anyone is in the driving seat but we've got the best run-in, this might go right down to QPR [on the final day] and it could come to goal difference."
Walsh also credited an improved attacking intent behind Leicester's recent run - having scored 10 of their 34 league goals in their last four games.
"The tactics and the way we've been attacking a little bit more have worked well," he added.
"When the fixtures came out and I looked at the last eight games and saw they were all winnable bar Chelsea possibly.
"There's potential in the team and all credit to Nigel Pearson for sticking with it and taking pressure off the team.
"We've not done it yet by all means we've got it in our own hands because we've got four home games to come."
