Arsenal were the favourites to finish in the top four a week ago.
They had a golden opportunity on the weekend to enhance their chances of qualifying for the Champions League.
Unai Emery's side welcomed Crystal Palace to the Emirates Stadium on Sunday in buoyant mood.
However, they were defeated 3-2 in what was a shock result.
Arsenal had the chance to get back into the top four on Wednesday night.
They travelled to Wolves with the intention of taking all three points away from Molineux.
But they suffered defeat again.
Ruben Neves gave the home side the lead after 28 minutes with an exquisite 30-yard free-kick.
The Portuguese midfielder's effort just went over the wall and found it's way into the net past Bernd Leno.
That was the first goal Leno has conceded from a shot outside of the box this season.
Arsenal fans weren't happy with the wall, though, and they had every right to be.
A number of their players jumped half-heartedly in their attempt to block Neves' strike - including Ainsley Maitland-Niles.
And Arsenal were 2-0 down nine minutes later.
Matt Doherty doubled Wolves' lead after glancing home a cross from Jonny.
Wolves still had time to score once more in the first half.
Diogo Jota pounced onto a loose ball, drove past a number of Arsenal players and found the back of the net.
A number of Arsenal players will feel like they could have done better, including Leno.
Emery, who was without Pierre-Emerick Aubameyang, threw on Eddie Nketiah to try and salvage something from the game.
They did pull one back; through Sokratis with 10 minutes to go.
But Wolves held on to secure another win against a top six side.
Arsenal stay in fifth with three games to go, one point behind Chelsea in fourth.
With Chelsea, Arsenal and Manchester United all faltering, the race for the fourth Champions League spot could well go down to the wire.