Striker Didier Drogba hit the post and Florent Malouda wasted two good opportunities to recover from conceding that early goal but that was as good as it got as Wolves stood firm to pick up three points and lift themselves out of the relegation zone.
Chelsea have bagged one win in nine league games and face an almighty battle to keep their hands on the Premier League trophy.
"It is another defeat, our moment is not so good - and it is a difficult moment - but there are still a lot of games left," Ancelotti told BBC Sport. "We have to keep going, work hard and move on quickly. It's difficult to explain. There is not one reason.
"We had a lot of injuries, we have lost confidence and it's difficult to move on but it can happen."
Ancelotti's reign has been a successful one since he arrived in the summer of 2009.
Chelsea have won the Community Shield, the league title and FA Cup with him at the helm and he is determined to carry on, despite overseeing the club's worst run of form since the 1995/96 season.
"I don't fear [for my job]," insisted Ancelotti, who remarked before the match at Molineux that he felt lucky he remained as manager. "Obviously I am under pressure. My position is solid at this moment. I'm under pressure because the team didn't reach the result we wanted.
McCarthy reveals Terry compliment
"I think it's obvious we are not good enough in this moment. I hope I can continue this job because I would like to stay here and I have a good relationship with the players and with the club."
Meanwhile, Wolves boss Mick McCarthy was delighted with his players as they recorded a fourth victory in seven games to drag themselves out of the relegation zone.
"For effort and endeavour they never leave a drop on the pitch. They give me everything, for which I'm hugely thankful and proud of.
"We sometimes lack a bit of quality and sometimes make mistakes - and that's me included - but as a unit they're fabulous in terms of what they give me.
"We played 4-4-2 against the much-lauded 4-3-3 and I asked them to do certain things. You can ask them but it's the players who deserve the credit and the plaudits for doing it. They have to work blooming hard to play that way and they did."
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