But he has dismissed any suggestion that Monday's opponents Fulham will also be a part of the battle for survival.
The Eagles will start the game in 19th place in the table with the visiting Cottagers just two places above them after both have suffered following faltering starts to their respective campaigns.
But whilst Holloway would happily settle for a 17th-placed finish at the end of the season, he does not envisage Fulham fighting away at the foot of the table for much longer.
When asked if Martin Jol's side were part of the bottom four battle Holloway said: "That would be a bit of a disgrace to Fulham.
"For them they have had a mixed bag of results recently and then people were taking with a new owner and speculation grows.
"But Martin is a very shrewd cookie and they have got all sorts of players there. Scott Parker is fit again and when you look at it they are used to this division.
"I'm sure they will have much bigger aspirations than ourselves and the truth is we have got to try and finish first of the bottom four."
A 3-1 victory at home to bottom side Sunderland remains the only positive result so far this season for Palace, who have lost six of their seven Premier League fixtures.
Holloway admits his side need to improve but will not be writing them off this early in to the season.
"At the end of the day what we have been doing lately hasn't been good enough and we have got to do better," he said.
"That doesn't scare me, that is a fact and we have got to try and do that and do it very, very quickly.
"If this was the last game of the season then we are in the mire aren't we?
"But it isn't, we have got 31 left and have got to try and get some points and stay with the pack and try and grind some things out.
"At the moment we are in a bad run and things haven't gone our way but we have got to try and keep going.
"To be honest I think the group will respond to that because they are so newly-formed, it is no excuse but it is the fact, and we have to learn through adversity to get stronger."
Fulham travel to Selhurst Park buoyed by a late winner against Stoke before the international break.
Holloway wants his players to impress in front of their home fans and, although they have just three points on the board, has stressed to the supporters that they need to enjoy being back in the top flight.
"We have got to try and prepare to take on a team that won last week," he added.
"But we are at home and I want our fans to be in an upbeat mood and I'm sure whatever happens they will be because the effort the players give them and the amount of fanaticism they have make this a special place.
"We have seen some ups and downs and this is a major up, I know it feels different when you are not winning but you have got to get used to it, get ready for it and believe when all around you don't."