The Spain international believes two trophies of greater significance are still at stake and is remaining upbeat amid a poor run of form.
The Catalans were beaten 3-1 in the second leg of their tie after recording a 1-1 draw at the Santiago Bernabeu, meaning Barcelona misses out on the Spanish cup.
However, while admitting the defeat was yet another disappointment on the back of a difficult February for the club, Xavi is doing his best to remain upbeat and focused on the prizes still at stake.
"This was another setback after the loss against AC Milan, but we have to move on. Yes, we miss out on a trophy, but it's the least important one," Xavi told reporters.
"We are still in the running for two important titles. We have to return to winning ways against Madrid at the weekend and hold our heads high."
Barca takes on Madrid in La Liga at the Santiago Bernabeu on Saturday afternoon.