The Lions are hovering precariously just one point above the relegation zone after Saturday's 1-0 defeat at home to Brighton.
They are without a win in their last seven matches and face a trip to promotion-chasing Derby next weekend, but Holloway insists they can survive.
"We're in a bad situation but I'm still so confident that we will turn this around," he said.
"The tougher it gets, the tougher we have to get. But we will keep fighting right until the end because that's our duty.
"I truly believe that we will have been better than three other teams by the end of the season, and that's what will matter. Everybody has to keep believing."