The Lions are now second from bottom, two points from safety, following Saturday's 2-2 draw at home to Blackburn.
They have just seven games to save themselves, starting with two tricky trips to play-off hopefuls Nottingham Forest and Wigan.
But Holloway insisted: "We've still got a chance.
"We have to get five wins from our last seven games. There are two tough away matches coming up against Forest and Wigan, but we went to Derby and got a win so why can't we do it again?
"We will keep fighting and believing and I won't stop encouraging these players."